Premier Jiang Yi-huah (江宜樺) yesterday warned that further sanctions may be imposed against the Philippines.

Manila said it had "gone the extra mile" to appease Taipei and expressed concern that its special envoy sent to the island had been rebuffed.

Shares in Taiwan closed higher on expanded turnover yesterday as investors had high hopes that the government will revise the capital gains tax on stock investments by exempting retailer investors from the levy, dealers said.

A sharp fall in the cost of gas drove a measure of U.S. consumer prices down last month by the most since December 2008. Outside the drop in fuel costs, prices were largely unchanged.

More than 2,000 people in southern China unfurled banners and shouted "Protest! Protest!" on Thursday to oppose plans for a petroleum refinery, in a large environmental rally that local authorities allowed to go forward in order to let the public vent frustration.

The government enacted the second stage of retaliatory measures toward the Philippine government to show dissatisfaction with their responses to Taiwan's demands over the Hung Shih-cheng (洪石成) fisherman shooting incident, yesterday.

The first stock gains tax review meeting was held yesterday evening, and the review team produced a new tax version which removes the 8,500-point market barrier and charges 0.1 percent on transactions over NT$1 billion.

Japan's three largest banks on Wednesday reported healthy annual profits driven by their overseas operations, reduced costs and investment gains, but warned over the outlook for this year.

The Philippine president on Wednesday apologized to Taiwan for the fatal shooting of a Taiwanese fisherman by Philippine coast guard personnel, after Taiwan rejected an earlier Philippine apology and started retaliating diplomatically.

The Philippines government was expected to issue an official apology to Taiwan government over the attack of a Taiwanese fishing boat by a Philippine state vessel last Thursday, which left one Taiwanese fisherman dead, local media reported yesterday.

A Taiwanese skipper has been arrested by Japanese authorities for fishing on Japan's side of a temporary enforcement line in overlapping waters in the East China Sea, an official said yesterday.

A Taiwanese captain arrested by the Japanese authorities Tuesday in waters near Japan's Ishigaki Island for trespass has been released along with his detained fishing vessel, the Ministry of Foreign Affairs said yesterday.