Money is flowing back into Taiwan stocks ahead of this week's Trump-Xi summit, which is good for investors, though Middle East fighting and oil above $100 keep the mood cautious.

• Trump and Xi meet at the White House on the 24th, with an AI dialogue channel, extending the tariff truce, and rare earth supplies as the main topics.
• Treasury Secretary Bessent called his pre-summit talks with China's He Lifeng "very successful," with both sides discussing closer communication on AI threats.
• Foreign investors made one of their biggest single-day buys ever in Taiwan stocks last week, pushing the market up 2% for the week, and are also cutting their bets against the index.
• Fighting in Yemen has restarted, Riyadh was hit by missiles for the first time, and the US warns the Saudi-Houthi conflict could escalate quickly, keeping Brent oil above $100 even after a small pullback.
• Iran has passed on its conditions for reopening the Strait of Hormuz through mediators, and Trump says the Houthis have agreed not to fight the US directly.

Outlook: The key test is whether daily trading in Taiwan stays above NT$1 trillion into the Mid-Autumn holiday and whether big chip stocks keep rising; a friendly Trump-Xi outcome and a Hormuz deal would help, while a wider Saudi-Houthi war would hurt.