Taipei - Taiwan's stocks ended 2.3 per cent higher Tuesday, bolstered by Wall Street's overnight rally, dealers said.

The main TAIEX stock index opened higher and extended its upward trend to close at 5,242.18 points, up 118 points or 2.3 per cent from Monday's trade.

Dealers said the US government's announcement of its plan to absorb bad debts of major US banks brought forth a bullish sentiment in the local stock market, igniting strong buying in the financial and construction sectors.

All eight major sectors rose, with cement sub-index soaring 3.7 per cent to become the day's biggest winner, followed by construction at 3.5 per cent and financials at 3.2 per cent. (dpa)