Taiwan's main stock index bounced back Tuesday, a good day for chip investors, though trading stayed thin as most people waited for bigger news.

• Chip stocks led the rebound after a rally in South Korea lifted memory chip makers, pulling Taiwanese peers up with them.
• TSMC, which makes up over 40% of the market's value, recovered from its lows and single-handedly drove most of the index's gain.
• Trading volume stayed flat because buyers and sellers are holding off ahead of Nvidia's earnings and Fed Chairman Kevin Warsh's Jackson Hole speech.
• Money also moved into non-tech names, with plastics makers and financial stocks climbing; Fubon Financial jumped after posting a big return on its Taiwan stock holdings.
• Foreign investors were still net sellers on the day, a sign the bounce may not have deep support.

Outlook: The rebound is not yet convincing, and direction will likely hinge on Nvidia's results and what the Fed signals at Jackson Hole.