* Turnover low, pressure seen above 8,500 - analyst
By Clare Jim
TAIPEI, March 21 (Reuters) - Taiwan stocks extended gains by the mid-session on Monday after reports of improvements in the nuclear crisis in Japan. Western air strike in Libya has sent commodity shares higher, also giving a push to the main share index .
With investors remaining cautious, analysts said the TAIEX index would face pressure above the 8,500-point level but buying from long-term investors such as the National Stability Fund and insurance companies last week should provide some support.
"The direction of trade has turned around from last week, reflecting the improving situation in Japan. The only ones still gaining are oil counters," said Jih Sun Investment Consulting Co analyst Kevin Chung.
By 0343 GMT, the TAIEX index was up 0.8 percent at 8,454.32, after opening up 0.32 percent.
Commodities plays were among the top winners, with the plastics sub-index firming 2.35 percent. Formosa Plastics Corp was up 4.04 percent.
The tourism sub-index rebounded 2.74 percent.
Optoelectric shares , expected to benefit from price rises resulting from supply disruptions in Japan last week, were among the biggest laggards on Monday, retreating 0.33 percent. AU Optronics Corp dropped 1.18 percent.
Foreign investors were net sellers of T$8.3 billion ($280 million) worth of shares on Friday, expanding total sales to T$52.4 billion so far this month.
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