Taiwan stocks rally

A boost for Taiwan stocks on Monday as investors took cheer that a newly elected president will boost trade ties with mainland china.

Taipei's main TAIEX jumped 4 percent, at one (point) staging its biggest one day rally in more than 7 years.

Stock investor Chen Chih-yuan:

(SOUNDBITE) (Mandarin with English translation) STOCK INVESTOR CHEN CHIH-YUAN SAYING:

"Basically, various aspects of Taiwan's economy are now doing well. With a new direction from our next leadership, the opening up to Taiwan to the world will definitely boost the stock market."

The landslide victory of KMT party candidate Ma Ying-jeou over the weekend, raised hopes that Taiwan's sagging economy will receive a fresh boost.

China Airlines was among the top performers. Investors hoping Ma will fulfill a campaign pledge to start direct flights to mainland China.

Manufacturers such as chip maker TSMC also stand to benefit from better Taiwan-mainland ties. While firms already have some business in the mainland, there have been investment limitations.

Kevin Lin of Marbo Mutual fund.

(SOUNDBITE) (Mandarin with English translation) VICE-PRESIDENT OF MARBO MUTUAL FUND, KEVIN LIN, SAYING:

"We feel that in the short term the stock market will be affected and grow in strength. The main reason is that we have now a new leadership that is adopting a gentler approach towards cross-strait ties. So, this will definitely help to improve our ties with mainland China."

A new (president)(presidency) has certainly injected (confidence)(excitement) into the market here. But over the longer worries about the strength of the global economy with manufacturers and exporters a key (part) of the domestic economy.

Tara Joseph-Hui, Reuters, Taipei

landslide - an overwhelming electoral victory; "Roosevelt defeated Hoover in a landslide"

sagging - hanging down (as from exhaustion or weakness)
sag

v. sagged, sag·ging, sags

v.intr.

1. To sink, droop, or settle from pressure or weight.

2. To lose vigor, firmness, or resilience: My spirits sagged after I had been rejected for the job.

3. To decline, as in value or price: Stock prices sagged after a short rally.