Taiwan stocks rose 0.25 percent on Monday, recovering further from a one-and-a-half-month low hit last week, with tech heavyweights like UMC shrugging off weakness in US peers and high oil prices. The main TAIEX share index ended up 15.01 points at 6,058.96 after losing 2.6 percent last week due to net selling by foreign equity investors. "Companies with improving fundamentals still attracted buying interest but it was a weak rebound, judging from the trading volume," said Chiang Chen-sheng, manager at MasterLink Investment Advisory.
Turnover remained weak at T$63.62 billion, but up from Friday's T$56.67 billion, the lowest since late January.
Shares in United Microelectronics Corp (UMC) jumped 0.53 percent to T$19.00 after the world's second largest contract chipmaker said it plans to take a 15-percent stake in Chinese chipmaker HeJian Technology Co Ltd. Some small-cap tech firms also outperformed.
Wintek, the session's most active stock, shot up 1.96 percent to T$44.30 as investors bet on growing demand for the small-size screens it makes for mobile phones.
With the rising popularity of mobile consumer electronics, High Tech Computer, a maker of handheld computers, rose 2.02 percent at T$227.50.
The 0.39 percent advance in the heavily weighted electronics sub-index came even after the US Nasdaq dropped 0.43 percent to a 2005 low on Friday.
Meanwhile, investors snatched up financial issues on hopes of further consolidation in the overcrowded banking industry.
For example, Shin Kong Financial Holding gained 0.79 percent to end at T$32.00.
Despite the day's gains, caution remained over a March 26 protest rally against China's anti-secession law. The law is seen by critics as providing a legal basis for attacking the self-governing island if it declares formal independence.
Investors fear the government may retaliate against Beijing by slowing or halting deregulation of trade and investment in China. UMC is being investigated by Taiwan authorities for possible illegal investments in China's HeJian.
The over-the-counter market's TAISDAQ index rose 0.23 percent to 120.67, and April TAIEX index futures edged up 0.22 percent to 6,040.