Taiwan share prices closed up 1.17 percent Monday after Wall Street made a comeback at the end of last week, dealers said. The weighted index closed 85.02 points higher at 7,322.73, after fluctuating between 7,269.81 and 7,344.92, on turnover of NT$65.41 billion (US$2.03 billion). The market opened 0.81 percent higher, as investors took cues from Wall Street's gains, and the momentum extended until the end of session, led by so-called 'China chips' which have close business ties with the mainland, dealers said. However, the daily trading volume fell to the lowest level so far this year, as many investors remained on the sidelines amid cautious sentiment, the dealers said. 'It is too early to say whether the market has pulled out of its recent downward trend, ' said Concord Securities analyst Alan Lin said. 'That's why many investors here preferred to watch rather than act.' Noting that the debt problems in the eurozone are far from over, Lin said Wall Street is likely to encounter further volatility and as a result 'the local bourse may be jittery.' Lin said the low turnover has made it hard for the market to overcome strong resistance after last week's heavy losses. 'I would say today's gains were just technical in nature, ' he added. Lin said investors should watch closely to see how foreign institutional investors respond to future fluctuations on Wall Street. If the U.S. markets start falling again after Friday's recovery, redemption pressure on foreign institutional investors will go up, paving the way an exodus of funds from Asia. China chips rebounded significantly on hopes that robust domestic demand on the mainland will continue to boost their bottom line, dealers said. Ruentex Industries gained 6.20 percent to reach NT$73.60, Wei-Chuan Foods rose 4.75 percent to NT$31.10, and Taiwan Cement increased 2.50 percent to NT$26.60. The flat panel display sector saw gains on anticipation of orders by a Sichuan purchasing delegation for products from major Taiwanese makers AU Optronics and Chimei-Innolux, whose shares rose 2.50 percent to NT$30.80 and 1.11 percent to NT$36.15, respectively. United Microelectronics Corp added 2.14 percent to finish at NT$14.30, while Taiwan Semiconductor Manufacturing Co closed 0.34 percent higher at NT$59.00. 