Taipei - Taiwan's government and economists were in agreement Wednesday that the US financial chaos would negatively hit local financial institutions, stock and property markets but only in the short term.

The island's Central Bank decided to cut its bank reserve ratios starting Thursday to free up 200 billion Taiwan dollars (6.25 billion US dollars) in a bid to ease fund flows and boost the local markets.

Taipei - Taiwan is taking a softer approach at this year's UN General Assembly by attempting to join UN agencies instead of seeking full UN membership, a Taiwanese official said Wednesday.

Taiwan faces strong opposition against its UN membership from China, forcing the country to change tack after trying for 15 years to rejoin the international organization.

Taipei - Taipei stocks reboun

Taipei  - Taiwan on Tuesday suspended the operations of the local unit of the investment bank Lehman Brothers Holdings Inc and said it might help Taiwan investors seek damages from its US-based parent company.

On the order of the Financial Supervisory Commission, investigators went to Lehman Brothers' Taipei office to check the company's financial records.

The commission ordered the Taiwan office to suspend operations until the parent company's financial crisis is over.

Taipei - Rescuers in Taiwan searched Tuesday for victims of Typhoon Sinlaku, which left at least seven people dead, 11 missing and 20 injured.

At the Fengchiuming Tunnel in central Taiwan's Nantou County, rescuers dug out a minivan, a car and two bodies from a mudslide that buried nine vehicles.

Several backhoes were used to remove earth and rocks that buried the mountainside tunnel and buried one volunteer who was directing traffic Monday afternoon.

Rescuers had managed to rescue seven people and retrieve three dead bodies by Tuesday afternoon.

Taipei - Taiwan's stockmarket tumbled 4.89 per cent on Tuesday, falling below the key 6,000 level for the first time since November 2005, amid a sharply bearish sentiment brought on by US financial woes, dealers said.

The Weighted Price Index of the Taiwan Stock Exchange opened down 5.03 per cent and continued to tumble until after the government stepped in to ease the sliding trend. In the end, the local index lost 295.86 points or 4.89 per cent to close at 5,756.59, dealers said.