TAIPEI, TAIWAN - TAIWAN'S cabinet met on Sunday to discuss further measures to cushion the impact on the island's stock market of the spiralling global economic crisis, local television networks reported.

The networks did not say when such measures could be announced, but the vice chairwoman of the Financial Supervisory Commission, Lee Chi-chu, has made it clear that suspension of trading was not on the government's list of options.

The Taipei-based China Times, without revealing its sources, said a ban on the short-selling of stocks imposed last week by Taiwan's financial regulator could be extended for another two weeks.

The market was shut last Friday due to a national holiday, as major markets across Asia plunged more than 7.0 per cent.

Analysts say Taiwan's weighted index may test the key 5,000-point level and even fall to the 4,600-4,700 point mark this week.

In the week to October 9, the index closed down 611.52 points or 10.65 per cent at 5,130.71 after a 3.16 per cent fall a week earlier.

Pressure has been mounting on the government of President Ma Ying-jeou as an increasing number of his supporters are losing patience.

Mr Ma, who assumed the presidency earlier this year, made a campaign promise to revive the island's flagging economy. He pledged to achieve six per cent annual economic growth, although he gave no timeframe.

Taiwan's exports in September fell 1.6 per cent from a year earlier to 21.85 billion US dollars, in the first year-on-year decline in 18 months.

Last month Mr Ma appointed his deputy Vincent Siew to lead an ad hoc economic advisory panel to help cope with the global economic downturn.

Mr Siew, a veteran economist, is widely credited for leading Taiwan safely through the 1997 Asian financial storm as then-prime minister. -- AFP