Taipei  - Taiwan stocks rebounded to post gains of nearly 1 per cent Tuesday, after a steep opening fall, as Asian stock markets rallied across the board.

The benchmark TAIEX index lost nearly 6 per cent in early morning trading, but recouped to post a 0.76 per cent increase by the close.

Analysts attributed the rebound to the rallies on major Asian markets, which followed heavy losses Monday.

"Yesterday Chinese Premier Wen Jiabao said during his visit to Russia that China will help Hong Kong through the financial crisis, and South Korea raised its interest rates by 0.7 per cent," said Chiu Hsin-lin, vice chairman of the Industries Bank of Taiwan Securities.

"These two factors caused Hong Kong and South Korean shares to rebound today, which also affected the Taiwan stock market." dpa dc tl