Taiwan stocks rose 0.5 percent on Monday, lifted by a second day of gains for TSMC after the world's top contract chip maker posted a better-than-expected quarterly profit and issued an upbeat outlook. The main TAIEX index gained 39.58 points to 7,970.38, after opening up 0.57 percent, with TSMC advancing 1.9 percent. Banking shares climbed 0.8 percent. The Taiwan dollar inched up T$0.039 to stand at T$29.801 to the US dollar.