The MSCI Asia Pacific index is down 13 per cent so far this year and ended the month on Monday with its worst first-half performance since 1992.
Government officials in Taipei, where the local market dropped to a five-month low on Friday, said the cabinet had called on government pension and insurance funds to buy more domestic shares and to hold their investments for a longer period.
Central bank officials and ministers met over the weekend to discuss measures to boost investor confidence and the possible use of the T$500bn ($16.4bn) National Stabilisation Fund designed to support markets in times of volatility caused by non-economic events.
In Vietnam, it is reported that the stock exchange and securities regulator was setting up a stabilisation fund to support a market that has lost nearly two-thirds of its value this year.
In Pakistan, the Karachi Stock Exchange is coming under increasing pressure to use a Rp30bn ($442m) stabilisation fund set up last week for use in "volatile circumstances".