TAIPEI: Taiwan stocks rose 1.69 percent to a two-month closing high on Wednesday, underpinned by gains in tech issues such as TSMC, amid hopes Japan will pump money to boost its economy after the massive quake.
All sectors were on the positive ground, led by autos which rose 2.86 percent. The sector gained as some Japanese firms started shipping components to Taiwan after the quake and nuclear crisis.
"Japan will be pumping lots of money into its financial system, which would lure foreign investors back to emerging markets such as South Korea and Taiwan," said Robert Hsieh, an assistant vice president at Shin Kong Financial's fund arm.
However he saw resistance at 9,000 points in the near term.
China raised its interest rates on Tuesday for the fourth time since October, indicating that its economy was strong: positive news for Taiwan's exporters.
Smartphone maker HTC surged 5.26 percent to T$1,200, bringing its market capitalisation to over T$1 trillion, which puts it second only in size by this measure to the world's contract chip maker TSMC.
TSMC rose 3.1 percent to finish at T$72.9. TSMC and HTC were the most actively traded issues by turnover.
The main TAIEX index ended up 146.85 points at 8,851.98, its highest close since Feb. 9, with electronics shares 2.16 percent higher.
LCD panel maker Chi Mei Innolux was up 2.5 percent on a news report Hitachi Display Ltd would outsource more of its LCD production to the Taiwan firm.
Yageo shares went limit up on news its chairman and private equity firm KKR launched a public offering for the outstanding common shares of Yageo, valuing the company at T$47 billion.
Banking stocks rose 1.1 percent.
Taiwan President Ma Ying-jeou said he would be supporting the tax.
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