Taipei - Taipei stocks rebounded Wednesday on speculation that insurance giant AIG could receive a US government bailout and amid Taiwan's and China's cutting of central-bank interest rates.

About 16 minutes into morning trading, the benchmark TAIEX was up 229.17 points, or 3.98 per cent, to 5,958.76 points.

"After several days of plunge, it is natural for TAIEX to rebound in reaction to positive financial news at home and abroad," said Chiu Hsin-lin, deputy manager of the Industry Bank of Taiwan Securities. (dpa)