Taipei - Taiwan's stocks closed 2.72 per cent lower amid a bearish sentiment triggered by Wall Street's sharp overnight losses as well as a dismal global and local economic outlook, dealers said.

The TAIEX index opened nearly 4 per cent lower in response to the overnight fall of Wall Street. Government funds moved by mid-morning to buy strongly, helping to somewhat ease the slide.

The index closed at 4730.51 points, a drop of 132.08 points or 2.72 per cent.

All eight major sectors dropped, with the paper sub-index falling 3.43 per cent to become the biggest loser of the day. (dpa)