Taipei, April 30 (CNA) Taiwan’s share prices surged 6.74 percent Thursday, marking the biggest single-day rise this year and the eighth biggest ever, on optimism that the new government will soon announce measures to boost investment and relax controls on economic links with China, market analysts noted.

The TAIEX advanced 378.51 points to close at 5,992.57, following the invitation to Taiwan to attend this year’s World Health Assembly as an observer, a sign of Taiwan’s rapidly warming ties with China.

Buoyed by media reports that Taiwan will open its stock and futures markets to qualified direct institutional investors (QDIIs) from China beginning next week at the earliest, the local bourse opened sharply higher at 5,964.03 and rose to 5,995.12 at one stage before moving down to 5,932.03.

A total of 5.62 billion shares changed hands on market turnover of NT$136.88 billion (US$ 4.12 billion).

All the eight major stock categories gained more than 6.7 percent, with cement stocks and paper and pulp issues moving up the most at 6.9 percent. Banking and financial shares and construction stocks surged 6.8 percent. Textile stocks, machinery and electronics shares, foodstuff issues, and plastics and chemicals issues all rose 6.7 percent.

Gainers outnumbered losers 2,090 to 277, with 24 stocks remaining unchanged.

Foreign investors were net buyers of shares worth NT$32.99 billion.

Analysts believe that as the TAIEX Index futures rose by the maximum allowable 7 percent to 6,015 Thursday on bullish sentiments, the TAIEX could break the 6,000-point threshold to reach 6,071 in the near future.

(By Y.L. Kao)