Taiwan riled by poll deadlock
 |  An opposition supporter outside the presidential office in Taipei. |
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TAIPEI, Taiwan (CNN) -- Thousands of opposition supporters have refused to disband protests in Taipei until votes are recounted as conspiracy theories and allegations of fraud swirl around the weekend poll.
The opposition Kuomintang nationalist party (KMT) says President Chen Shui-bian's razor-thin election victory Saturday was marred by voting irregularities and sympathy votes garnered by Friday's apparent assassination attempt on the president, and they want the results reviewed.
Chen secured a second term by winning 6.47 million votes, compared to 6.44 million for opponent Lien Chan, but over 300,000 votes were ruled invalid -- more than ten times the winning margin.
The KMT's Lien has refused to concede defeat and vowed to fight the "unfair" victory. He swiftly called for a recount and raised doubts about the shooting attempt on the president and Vice President Annette Lu, which he says affected the vote.
Authorities have offered nearly $400,000 for information on Friday's shooting, which took place on the last day of campaigning in Chen's southern hometown of Tainan.
Seeking to dispel speculation the incident was somehow faked, Chen's aides made public photos of the president being treated for a gunshot wound.
But with no arrests, no weapons found, no suspects identified, and accusations of political interference in the investigation, supporters of the KMT -- the party projected to win the poll -- were standing firm.
After scuffling with police in central and southern Taiwan upon hearing of the poll result, an estimated 10,000 opposition supporters stood in front of the presidential office demanding a recount.
While Taipei Mayor Ma Ying-jeou, a key Lien supporter, told protesters to go home shortly before midnight Sunday, hundreds were still blowing airhorns early Monday as businesses and schools in the area reopened.
On Sunday, Taiwan's high court ordered all ballot boxes be sealed as evidence and are considering whether a recount will go ahead.
Reacting to the political deadlock, Taiwan's stock market plunged nearly 7 percent as most stocks fell by the daily seven percent limit. (Taiwan hit)
Beijing plots
Mainland Chinese officials said they were "closely following" the developments, and in an official statement, the Taiwan Affairs office in China noted that some Taiwan media considered it an unfair election.
China also criticized a referendum that asked whether Taiwan should boost its defense capability against China's missile threat and open negotiations with Beijing.
 |  The Presidential Office made public photos of Chen being treated for a gunshot wound. |
The referendum failed because not enough voters cast ballots on the questions. (Full story)
China expert Willy Lam says Beijing is mapping out strategies to undermine the authority of the controversially re-elected Chen -- and to position itself as the real champion of Taiwan's 23 million people.(Beijing plots)
In Washington, the State Department praised the democratic election but urged people to remain calm amid the politically uncertainty.
Turnout for the election reached 80 percent.
Chen and his pro-independence Democratic Progressive Party swept to power in 2000, ousting the KMT, which ruled the island for five decades and opposed Taiwan's independence from the mainland.
Chen had pushed ahead with the referendum despite warnings from Beijing and Washington not to take any steps that could fuel tensions with mainland China.
Beijing views Taiwan as a breakaway province that must be reunited with the mainland, by force if necessary.
Lien, one of Taiwan's richest men, favors what is widely regarded as a more conciliatory approach to China. (Profiles: The candidates)
CNN Senior Asia Correspondent Mike Chinoy and The Associated Press contributed to this report.