Taipei - Taiwan stocks rose nearly six per cent in mid- morning trading Friday, boosted by Wall Street gains and an across- the-board rebound on major Asian stock markets.

One hour into trading, the TAIEX index surged 318.28 points, or 5.64 per cent, to 5,960.23 points.

Analysts attributed the rise to a 3.86-per-cent surge on the Dow Jones Industrial Average on Thursday. US stocks posted significant gains on Thursday, the latest swing in a topsy-turvy week on Wall Street amid a burgeoning financial crisis and massive government interventions aimed at preventing wider economic fallout.

The US markets appeared to be buoyed by talk of a more permanent solution to the financial turmoil after legislators indicated a willingness to create a new government agency that would take on the bad loans of struggling banking firms. (dpa)