Taiwan dollar gains for 3rd session, tracking stocks

* T$ hits three-day high in slow trade

* Taiwan stocks gain on tech sector recovery optimism

TAIPEI, Nov 6 - The Taiwan dollar firmed for a third session in slow trade on Friday, tracking gains in local stocks, which were up due to optimism about the tech sector's recovery.

Shortly after opening flat, the Taiwan dollar rose to T$32.47 to the U.S. dollar, its strongest rate since Tuesday.

"Stocks are it today, no other factors," a dealer in Taipei said. "The trade volume is tiny for lack of a clear direction."

Taiwan stocks opened up 1.33 percent on Friday, led by major technology exporters such as TSMC after sharp gains on Wall Street raised optimism over the sector's recovery.

In the non-deliverable forwards market, six-month NDFs were quoted at -0.700/-0.650, compared with Thursday's -0.680/-0.630. That indicated the market was expecting the Taiwan dollar to strengthen by a larger degree in half a year.

Keeping the Taiwan dollar's gains in check, the U.S. dollar edged up globally on Thursday, recovering some recent losses, as investors booked profits before a U.S. employment report expected to shed more light on the health of the economy.

0145 GMT PREVIOUS SESSION T$ (Taipei Forex Inc) 32.487 32.558 (close) Volume in $ mln (Taipei Forex Inc) 62 46 T$ (Cosmos) 32.485 32.535 (close) Six-month NDFs -0.700/-0.650 -0.680/-0.630 Note: Taipei Forex Inc is Taiwan's main forex exchange; Cosmos is a smaller exchange. Both exchanges end trading at 0800 GMT Source: NDFs quotations from Prebon Asia For more foreign exchange news, please click