Taiwan share prices close up 1.23 percent

TAIPEI: Taiwan share prices closed 1.23 percent higher Tuesday led by big caps in the electronics sector, dealers said.

The weighted index rose 89.31 points to 7,346.26 on turnover of 97.45 billion Taiwan dollars (2.99 billion US dollars).

Gainers outnumbered losers 1,458 to 801, while 253 stocks were unchanged.

A total of 52 shares surged to their daily 7.0 percent limit, against 10 that were limit-down.

"Trading was very quiet in the first two hours. The market was boosted after buying in the big caps like Hon Hai Precision Industry and MediaTek," said Allen Lin of Concord Securities.

Financials rebounded on reports that Taiwan plans to sign an agreement with China in October that will allow some of the mainland's huge pool of liquidity to start flowing into the island's stockmarket, local newspapers said.

Once it is signed, Chinese institutional investors will be allowed to buy shares on the Taiwan Stock Exchange, which has so far been closed to mainland money, the papers said.

Fubon Financial closed up 1.75 percent at 34.9 and Cathay Financial was 0.95 percent firmer at 52.9 as the sector rose 1.01 percent.

Hon Hai rose 2.45 percent to 125.5 and MediaTek edged up 0.8 percent to 506.

Electronics rose 1.41 percent, plastics 0.98 percent and cement 0.55 percent. The food sector fell 0.12 percent.

Taiwan Semiconductor Manufacturing Co finished 1.63 percent higher at 62.5 while United Microelectronics Corp was up 0.32 percent at 15.5.