TAIPEI: Taiwan stocks advanced on Tuesday, joining a regional rally on euro zone optimism, with HTC Corp reversing course from three consecutive sessions of decline.
"HTC has dropped too much; investors are now bargain hunting," said Michael On, a managing director of Beyond Asset Management, but adding that its share price might be constrained in the long run because of the company's growth slowdown.
The main TAIEX index rose 0.83 percent, or 57.27 points to 6,956.05 by 0134 GMT, after opening up 0.98 percent.
HTC bounced 3.61 percent, after shedding 16.5 percent in the previous three sessions, following a surprise cut in its fourth quarter revenue outlook.
LCD makers were among top gainers, gaining 1.8 percent. Chimei Innolux, however, slipped 0.79 percent. Barclays Capital said restocking is expected to start in the first quarter of next year, according to media reports.
Electronics shares gained 1 percent, while financial shares edged up 0.99 percent.
The semiconductors sub-index was flat, with TSMC and UMC falling 0.41 percent and 0.8 percent, respectively.
The Taiwan dollar was up 0.14 percent at T$30.408.
Foreign investors turned net buyers on Monday, picking up T$1.19 billion.
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