TAIWAN stocks extended early gains to end sharply higher and turnover expanded on hopes that a group of legislators would succeed in pushing a proposal to cut the stock transaction tax through parliament.
The weighted index closed 80.32 points or 2.1 per cent up at its intra-day high of 3,894.94.
Turnover rose to a moderate NT$18.99 billion from Wednesday's thin $10.9 billion.
Parliament's finance committee has urged the Securities and Exchange Commission to take steps to boost the market, including the tax cut.
Brokers said a tax cut appeared increasingly likely, and some official action to help the market seemed certain.
''The stock tax will likely be cut to half of its current 0.3 per cent level, or if not they may suspend the tax for a year,'' said Tu Jin-lung of Grand Cathay Securities.
Several brokers said sentiment was boosted by buying orders from the Hualon group, whose head Oung Ta-ming is one of the legislators pressing for the tax cut.
