Taiwan stocks ended up 1.05 percent on Monday at their highest level in five months as gains on Wall Street boosted investor confidence that the outlook for the world's largest economy remained healthy. The main TAIEX share index finished at 7,151.42 points, a level not seen since May 15. Leading the way was the electronics sub-index, which rose 1.54 percent.
The financial sub-index gained 0.8 percent. "Investors had worried about a slowdown in the US economy, but the Dow hit record highs last week, indicating the economy is still picking up strength," said George Hou, president of JF Asset Management, which oversees T$140 billion (US $4.2 billion) in client assets.
Hou said JF's mutual funds will continue to hold electronics component stocks and "China plays", traditional manufacturing firms with exposure in China. The Dow Jones industrial average closed at an all-time high on Friday amid positive retail sales data. Among the most active shares in the tech sector, smartphone maker High Tech Computer Corp (HTC) ended up 3.14 percent.
Taiwan Semiconductor Manufacturing Co Ltd, the world's top contract chip maker and Taiwan's most heavily weighted share, rose 3.17 percent. Bowa Commercial Bank, a small and weak lender, surged the 7-percent daily limit, after a local newspaper said Bowa is in talks with three potential foreign buyers to sell a stake.