Taipei  - Taiwan stocks opened lower Friday after the government admitted that the nation's economy was in a recession and on further grim news from Wall Street.

The TAIEX benchmark index fell 127 points on opening and then dived further to 135 points, the biggest drop in six years.

An hour into trading, the TAIEX dip contracted to 88.96 points, or 21.8 per cent, to stand at 4,000.97. (dpa)