Having seen Kazakhstan's Zulfiya Chinshanlo break her own clean and jerk world record by 1kg with her second attempt at 132kg, Hsu replied with the same weight on her next lift.
It smashed the combined world mark with a total of 233kg, 3kg more than China's Li Ping achieved at the Guangzhou Asiad four years ago.
Olympic champion Chinshanlo, however, retains the title of clean and jerk world record-holder by virtue of being first to achieve 132kg, albeit by a matter of two minutes.
But she buckled under the huge load and had to settle for silver with a total of 228kg.
"I fought for this and I knew we were on the same level. But never in my dreams did I think I would have to break the world record to win gold," a delighted Hsu told AFP afterwards.
She added that it had all come as a shock and she had exceeded even her own expectations.
"I never lifted that much, not even in training," Hsu said. "My next goal is to win an Olympic gold. I am so happy."
China's 20-year-old Zhang Wanqiong set two new junior world records on her way to a bronze, her country's first medal of the weightlifting competition.
