Taiwan shares surged 2.47 per cent yesterday on reports that government funds were buying into Tuesday's tumble. In other markets around the region, caution prevailed and most indices failed to win back Tuesday's steep losses. Early gains were wiped out by late nervousness in Tokyo and Australia, where stocks ended near the previous close. Buyers were undaunted in Singapore and Bombay. Singapore blue chips, which looked bombed out after recent losses, gained 1.13 per cent on follow-through buying from late Tuesday. Bombay stocks ended the session 2.14 per cent higher on domestic factors.