Taiwan stocks jumped 3.23 percent to end at a 1-month high on Thursday, as a rally on US stock markets fuelled buying across the board, with a spotlight on technology heavyweights such as AU Optronics.
The main TAIEX share index shot up 175.24 points to close at 5,602.99, marking the largest daily percentage rise since June 7, when the index surged 3.7 percent.
"The market had been depressed for about one month and people just put aside recent negative factors and chased stocks higher after the rally on Wall Street," said Maggie Chien, consultant at Capital Investment Management.
News that Taiwan's financial regulator had no immediate plans to tighten delisting rules also helped sentiment, analysts said.
Turnover expanded to T$99.37 billion from T$65.2 billion on Wednesday, reflecting improving confidence among investors who had been worried about a bleak outlook for the tech industry and weak earnings from small-cap industrial companies.
Display screen maker AU, the day's most active stock, surged the daily seven percent limit for a second day to T$43.20.
Taiwan Semiconductor Manufacturing Co, the world's top contract maker of microchips, rose 4.46 percent to T$46.80.
On the non-tech side in Taiwan, investors ventured back to small-cap industrials such as construction and cement shares that were hit hardest on Wednesday.
The over-the-counter TAISDAQ index closed up 3.70 percent at 110.02, and August TAIEX futures jumped 1.57 percent to finish at 5,423.