TAIPEI, Aug 6 (Reuters) - Taiwan stocks

retreated from early strong gains on Tuesday morning amid

lingering concerns over the outlook for the U.S. economy and

tech companies following a record plunge a day earlier.

The main index jumped more than 4% in early trade to

as high as 20,640.44 points, but quickly pared those gains to be

up around 1%.

Shares in the dominant technology stock TSMC, the

world's largest contract chipmaker, rose more than 6% in early

trade before pulling back to a gain of around 4%.

Taiwan's other major-weighted tech stocks also rebounded.

Mediatek ( MDTTF ) was up 7.5% while Quanta rose 2.1%.

Taiwan was one of several markets that tumbled on Monday

amid fears the United States could be heading for recession and

as investors sought refuge from riskier assets.

Taiwan Stock Exchange President Lih-Chung Chien has said the

bourse would work with regulators to maintain stability when

needed.