Taipei  - Taiwan stocks closed 2.76 per cent higher on Monday, bolstered by a strong rebound in the US, Europe and across Asia, dealers said.

The main TAIEX index opened sharply higher and extended its gains all the way to close at 6,838.25, up 183.45 points, or 2.76 per cent from Friday's trade.

Dealers said prospects of US economic recovery ignited strong buying in the US and the European markets Friday, encouraging Asian stocks to open higher on Monday.

They said the latest plans by China Mobile, the world's largest telecommunication supplier, to form alliances with major high-tech firms in Taiwan, including electronics giant Hon Hai Group, also boosted local sentiment, with the electronics sub-index surging 2.75 per cent.