"Dow Jones' new high means investors have officially put financial market chaos behind them," said Liu Juming, who helps manage US$1.7 billion at IBT Securities Co. in Taipei. "Investors in Asia can return to focus on corporate earnings and growth."

The TAIEX index added 134.75, or 1.4 percent, to close at 9,623.25 in Taipei, its highest close since July 25. About the same number of stocks rose as fell. Futures due in October climbed 1.8 percent to 9,669.

Taiwan Semiconductor, the world's biggest supplier of made-to-order chips, rose NT$1, or 1.6 percent, to NT$64.90. Taiwan Semiconductor makes about three-quarters of its sales to U.S. buyers. Hon Hai Precision Industry Co., Taiwan's biggest electronics exporter, added NT$7, or 2.9 percent, to NT$250.

U.S. stocks rallied Monday, sending the Dow to a record, after Citigroup Inc. said it expects "a normal earnings environment" in the fourth quarter, and former Federal Reserve Chairman Alan Greenspan said the credit slump may be ending.

Losses on U.S. subprime mortgages, home loans granted to higher-risk borrowers, led to a sudden increase in credit costs that triggered a sell-off in global equities in the past quarter.

High Tech, the world's biggest maker by volume of handsets based on Microsoft Corp.'s Windows operating system, surged NT$34, or 6.9 percent, to NT$529. Chunghwa Telecom plans to buy more than NT$1 billion worth of handsets from High Tech in the fourth quarter, the Commercial Times reported.

Chunghwa Telecom agreed to buy up to 30,000 of High Tech's new model CHT 9110 handset from the fourth quarter, Shen Fu-fu, a spokeswoman for the Taipei-based operator said yesterday.Chunghwa Telecom, Taiwan's biggest phone company, gained NT$0.7, or 1.2 percent, to NT$61.70.

First Steamship Co., which provides transportation services for raw materials such as cement and coal, rose NT$2.80, or 2.9 percent, to NT$98.10.

Katherine Yeh, an analyst at Yuanta Securities Co., raised her share-price forecast for First Steamship to NT$115 from NT$93, citing higher freight rates. Yeh maintained her "buy" recommendation in a report dated yesterday.

Elsewhere, China Airlines, Taiwan's largest carrier, gained 10 cents, or 0.7 percent, to NT$13.75. Chairman Philip Wei was replaced by company President Ringo Chao at a board meeting yesterday.

In a related story, the Bureau of Labor Insurance under the Council of Labor Affairs announced yesterday its investment of the labor insurance fund, totaling NT$20.5 billion, has generated NT$14,8 billion in earnings over the past three years, translating into a return of investment of over 70 percent.

The 72.62 percent yield, made from Oct. 1, 2004 to Sept. 30, 2007, even beat that of the TAIEX, which generated a yield of 61.46 percent during the same period.

The money was managed by seven asset management firms. The labor insurance bureau yesterday signed with the seven firms to expand the investment to NT$44.9 billion.

"The asset management firms have to make yield of 7 percent each year, or 21 percent over three years, for us to extend the contract," the bureau said. "It turns out they made much more."

The bureau attributed the huge return of investment to a rally of Taiwan stocks this year, as well as careful monitoring of the seven firms as they managed the fund.