Taipei  - Taiwan stocks fell more than 3 per cent by mid-morning Monday as investors worried about the global economic slump.

The Taiex dropped 176.67 points, or 3.08 per cent, to 5,565.56 three hours into trading.

"Major Asian shares dived today because, despite the passing of the 700-billion-US-dollar rescue package in the US Congress, many Americans don't think the package can solve all of America's economic problems," said Chiu Hsin-lin, executive vice president of the Industrial Bank of Taiwan Securities.

"The other factor is that the economic figures released by the US last week were discouraging," he added.

The US Labour Department reported last week that 159,000 jobs were lost in September, bringing the total for the year to nearly 800,000. (dpa)