Taiwan shares surge in heavy volume

Taiwan shares surged Wednesday to hit a new seven-year high.

Volume was its strongest in more than three years at 199.51 billion New Taiwan dollars (US$6.05 billion; 4.55 billion).

The Weighted Price Index of the Taiwan Stock Exchange rose 198.13 points, or 2.1 percent, to close at 8771.77.

Stanley Chou of Mega International said a correction was likely, because the market was overheated.

"Tai-Ex should succumb to profit-taking very soon," he said.

Tech heavyweights and the financial sector lead the way in Wednesday's trading.

TSMC rose 4 percent to NT$68.30. Cathay Financial gained 6.6 percent to NT$79.00. Shin Kong Financial rose the 7-percent limit to end at at NT$37.90.

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