Taipei  - Taiwan stocks opened the New Year on Monday by gaining more than 2 per cent, on the government's economics stimulus plan, improved Taiwan-China ties and US and European stock gains.

The TAIEX benchmark index gained 107.09 points, or 2.33 per cent, to close at 4,698.31.

Analysts credited Taiwan's economic revival plan and improved cross-strait relations, in addition to gains of about 3 per cent on US and European bourses Friday.

The global financial crisis caused the TAIEX to shed more than half of its value in 2008, from 9,309 to 3,955 points. (dpa)