Taiwan's Weighted Index surged 5.8% to 42,022.14 on Monday, ending a seven-session losing streak and recording its strongest intraday rally since July 31, as new short-sale restrictions and government support lifted sentiment.
The Financial Supervisory Commission cut the cap on intraday short-sale orders to 3% of average daily trading volume from 30%, and raised the minimum margin requirement for short selling to 130% from 90%. Taiwan's National Financial Stabilization Fund, holding NT$500 billion ($15.2 billion), was authorized Friday to intervene in markets as needed, marking its 10th intervention since 2000.
Technology shares led the rebound. Taiwan Semiconductor Manufacturing rose 6.1%, Largan climbed 9.9%, and Foxconn advanced 4.6%. VIA Tech gained 9.2%. Mirle Auto, Parpro, Flexium, and Aurotek each rose 10%. Losses continued among smaller stocks, with Vizionfocus falling 10%, Sino Horizon dropping 9.9%, Prime Electronics Satellitics declining 8.8%, Lerain Tech losing 8.8%, and ACES falling 7.3%.
The intraday advance reached as high as 6.4% during the session.