Taiwan shares ended up 0.46 percent on Monday, led by gains in tech heavyweights such as TSMC and UMC after the world's top two contract chip makers reported improving sales. The main TAIEX share index finished 38.17 points higher at 8,338.88, as the electronics sub-index rose 0.59 percent.
Turnover was flat with Friday at T$133.91 billion ($4.1 billion). The TAIEX had hit a 7-year high last on Thursday. Helped by gains in US peers, Taiwan Semiconductor Manufacturing Co (TSMC) and United Microelectronics Corp (UMC) climbed 0.31 percent and 1.52 percent, respectively.
US stocks rallied on Friday after a three-day slide, as bond yields retreated and oil prices fell, easing worries about rising borrowing costs and inflation. The semiconductor index also jumped 3.1 percent. "Turnover is still quite strong and investors are going to continue to focus on tech stocks.
This rise could continue until mid-June," said Masterlink Investment Advisory manager Chiang Chen-sheng. Mega International Securities' manager, Cliff Change, said the TAIEX index had a good chance of trading between 8,400 and 8,500 points this week.
The financial sub-index edged down 0.03 percent after Taiwan passed its first bankruptcy law for individuals on Friday. Hon Hai rose 0.59 percent after the Commercial Times reported that the firm had received an order for 32-inch LCD televisions from Sony for delivery in July, and was in the process of getting certification to make 40-inch sets that could be delivered as soon as next year. It did not cite sources. Hon Hai's spokesman told Reuters he could not confirm the report.
The company also said at its annual shareholder's meeting last week that it could look into investments in the healthcare sector. AU Optronics ended unchanged after the Economic Daily reported that the company's business was improving quarter by quarter from a recent LCD sector slump, with its plants operating at full capacity starting in May as it faces the prospect of an LCD TV shortage later in the year, citing a company executive.