Market hit as Taiwan student protest continues

Hundreds of students continued their grip on Taiwan's legislative building on Thursday, as the opposition Democratic Progressive Party (DPP) vowed to increase protests against a cross-Strait pact.

Students stormed into the assembly hall of the legislative building in Taipei on Tuesday evening in protest of the Kuomintang's decision to bypass the detailed review of a service trade agreement, which some feared might hurt the island's economy.

At a press conference held inside the assembly hall on Thursday morning, students demanded the pact be retracted and threatened further actions if Taiwan leader Ma Ying-jeou refused to respond to their requests.

DPP Chairman Su Tseng-chang said his party was fully mobilized and would "besiege" the legislative building on Friday.

The event has impacted the stock market.

Taiwan's share price closed down 1.06 percent on Thursday with the weighted index falling 92.13 points. Analysts feared the delayed implementation of the service trade agreement would block the negotiation of the goods trade pact, which would further dampen the island's economy.

More than 2,000 police are maintaining order at the legislative building, authorities said, adding that damage to the facility was estimated at 100 million New Taiwan dollars (NTD) (3.3 mln U.S. dollars).

Jiang Yi-huah, chief of the island's administrative authority, insisted that the passing of the service pact was vital for Taiwan's economy. Those opposing it should voice their opinions in a peaceful manner and follow democratic rules.

Many from Taiwan's industrial and business sectors have voiced their support to the pact while warning it being blocked would only push the island's export-oriented economy further into isolation.

Lai Cheng-I, chairman of Taiwan's General Chamber of Commerce, said protesters might not know the full picture and urged for rational discussion of the issue.

A follow-up agreement to the cornerstone Economic Cooperation Framework Agreement between the Chinese mainland and Taiwan, the service trade pact was signed in June but was still pending ratification by the island's legislature.