Taipei  - Taiwan stocks opened the New Year on Monday by surging nearly 5 per cent, on the government's economics stimulus plan, improved Taiwan-China ties and US and European stocks' surge.

The TAIEX benchmark index rose 134.04 points, or 2.92 per cent when the stock market opened at 9 am after being closed for four trading days since Wednesday for the New Year holidays.

By 10 am, the TAIEX had climbed 157.99, or 3.44 per cent, to 4,749.21.

Analysts said that besides Taiwan's economic revival plan and eased cross-strait tension, the market was also helped by US and European stocks that soared about 3 per cent on Friday.

The global financial crisis caused the TAIEX to shed more than half of its value in 2008, with the year's highest point at 9,309 and lowest point at 3,955. (dpa)