Taiwan's local election battle is heating up while cross-strait worries grow, a mixed picture for investors watching the island and a nervous one for anyone tracking China risk.

• The New Taipei mayoral race is now the main front in Taiwan's nine-in-one local elections, with the KMT pitching a "dual-Taipei prosperity" message against the ruling DPP.
• Trump will host Xi Jinping and his wife for a state banquet, a sign of warmer US-China talks even as tensions stay high.
• China's new defense mobilization law is being read as groundwork for a full-scale conflict, and Taiwan's defense ministry is planning a "cyber hunt team."
• Local markets are looking past the noise: big investors are piling into stocks with growing earnings, and gas and diesel prices stay flat next week.
• Taiwan also set up hundreds of sites for people to hand in vapes and named its team for the 2026 Asian Games.

Outlook: Expect the New Taipei race and the Trump-Xi meeting to dominate the next few weeks, with defense worries simmering underneath.