TAIPEI: Taiwan's cabinet on Wednesday said the military has increased its alertness level and authorities will make plans to ensure safety and stability around the island, after China announced a series of military exercises in response to U.S. House Speaker Nancy Pelosi's arrival in Taipei.

Taiwan's cabinet also said its citizens should feel reassured and that a national stabilisation fund for the stock market will closely watch the situation and react in a timely manner.

(Reporting by Yimou Lee, Writing by Martin Quin Pollard; Editing by Christopher Cushing)