The weighted index rose 81.17 points at 4,171.10, off a low of 3,955.43 and a high of 4,194.71. Turnover was NT$51.85 billion (US$1.55 billion).

The market opened down 3.11 percent as investors took cues from a 1.02 percent economic contraction for the third quarter and a Wall Street dive overnight, dealers said.

However, with the index falling below 4,000 points, bargain-hunters scrambled to pick up cheap stocks, in particular in the electronics sector, they said.

“The electronic subindex had fallen to a new low in five years after recent sell-offs. They appeared very attractive,” said Taiwan International Securities analyst Arch Shih.

Gainers led losers by 1,010 to 372 with 287 stocks unchanged.

Despite the rebound, Shih said volatility ahead was very likely.

“The economic contraction in the third quarter was just a beginning. We are expected to see more negative data over the next two quarters at the least,” Shih said.

“Uncertainty over the global economic climate remains in place.”

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