Taipei - The Taiwan stock market plunged nearly 4 per cent Thursday due to overnight falls on Wall Street caused by the US government's plans to revise its 700-billion-US-dollar bail-out plan.

The benchmark TAIEX index dived more than five per cent by mid-session, but recovered slighly in later trading and closed at 4,437.83, down 177.74 points or 3.85 per cent.

Affected by the TAIEX fall, the Taiwan dollar fell by mid-session from Wednesday's 32.994 Taiwan dollars to the US dollar to 33.176 Taiwan dollars to 1 US dollar. (dpa)