Taipei - Taiwan stocks closed flat Wednesday after an initial early surge prompted by Wall Street's big rally the day before.

The benchmark TAIEX rose as much as 7 per cent, but closed at 4,406.52, or up 0.15 per cent on the day.

Analysts attributed the early boost to a US bull run Tuesday. The Dow Jones industrials rose 889.35 points, or 10.88 per cent, ahead of a Federal Reserve meeting on Wednesday, when the US central bank is expected to further slash key interest rates. (dpa)