Taiwan shares stage strong rebound Friday morning, topping 42,000 points

Taipei, July 31 (CNA) Shares in Taiwan staged a strong technical rebound Friday morning, with the benchmark Taiex topping the 42,000-point mark after a rally on Wall Street overnight, dealers said.

Gains by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) helped the broader market recover from heavy losses over the previous few sessions, dealers added.

As of 10:02 a.m., the Taiex, the Taiwan Stock Exchange's benchmark index, had surged 2,728.96 points, or 6.83 percent, to 42,662.26, after plunging 4,917.51 points, or 10.96 percent, over the previous five trading sessions.

Dealers said the rebound followed an 8.19 percent jump in the Philadelphia Semiconductor Index overnight, driven by upbeat corporate earnings.

Strength in the South Korean market also lent support to the Taiex, dealers said.

After its American depositary receipts (ADRs) soared 7.64 percent overnight, TSMC, which accounts for more than 40 percent of the local market's total capitalization, has risen 7.94 percent to NT$2,380.00 as of 10:02 a.m., contributing about 1,400 points to the Taiex's gains.

Other large-cap tech stocks also traded sharply higher, with smartphone IC designer MediaTek Inc. and IC packaging and testing services provider ASE Technology Holding Co. rising 10 percent, the maximum daily increase, to NT$3,555.00 and NT$555.00, respectively.