Taiwan's financial regulator on Thursday said it had lifted curbs put in place last year to raise the cost of shorting a stock given improving market sentiment.

The regulator said it was lifting the controls due to the "gradual warming up" of domestic and international stock markets and easing of global "uncertainties".

The government put the curbs in place last year as they sought to stabilise financial markets amid rising global interest rates and asset price volatility.

Taiwan's benchmark stock index dropped 22% last year, but is up 10.5% so far this year. (Reporting by Emily Chan; Writing by Ben Blanchard; Editing by Alex Richardson)