Taipei - Taiwan stocks rose 2.07 per cent on Thursday, fuelled by Wall Street's overnight rally and bullish sentiment over a government plan to sign a financial memorandum of understanding with China, dealers said.

The main TAIEX index opened sharply higher, surging past the 6,000-point level in mid-session, and easing somewhat on profit taking before closing at 5,997.17, up
121.98 points or 2.07 per cent from Wednesday's trading.

Dealers said financial shares led all the way to the close on the government decision to sign a financial MOU with China during the third cross-strait summit in the Chinese city of Nanjing before next month.

All eight major sectors rose, with the financial sub-index advancing 5.5 per cent to become the day's biggest winner, followed by textiles' 4.4 per cent and cement's 2.4 per cent.