Taipei - Taiwan stocks on Friday recovered from a morning drop-off to close higher as government funds entered the market and the South Korean market surged 4 per cent.

The benchmark Taiex index rose 482 points, or 1.03 per cent, to end the week at 4,742.33.

Shortly after the market opened, however, the Taiex had plunged 4.34 per cent after two days of sharp declines on Wall Street. (dpa)