Taiwan shares ended 2.37 percent higher on Tuesday as tech exporters followed a rebound on Wall Street, with chip designer Mediatek in the spotlight ahead of quarterly earnings. The main TAIEX share index closed up 214.68 points at 9,287.25, bouncing from a near one-month low the previous session.
Turnover was active at T$223.8 billion ($6.8 billion), higher than T$213.01 billion the previous day. "After a rebound in the US, Taiwan stocks are on their way to a rise if they can hold steady at 9,400 points in the next few sessions, but we still have to be a bit careful with tech stocks," said Kevin Yeh, assistant vice president of Grand Cathay Securities.
The broader electronics subindex rose 2.17 percent, while the bank and insurance index gained 2.79 percent. "Many investors are in to do short term buying, so the market can be quite unstable," Yeh said. Mediatek shares was the most active stock on the market, rallying the 7 percent maximum ahead of its second-quarter earnings due out this week.
Yeh said the firm could post better-than-expected results and that its stock has been oversold in the past two weeks. Taiwan curtain maker Nien Made rose the daily 7 percent maximum after it said private equity fund CVC Capital Partners Asia would buy the firm for T$18 billion.
China Petrochemical also went limit-up after local media reports said it had obtained the last licence to process coal into chemicals in China. Quanta Computer, the world's largest contract laptop maker, jumped 3.47 percent after local reports said the government had approved an increase in its China investments.
Synnex Technology International Corp, Taiwan's top electronics distributor, rose the daily 7 percent maximum after the firm said it had obtained rights to sell Nokia mobile phones on the mainland.