Taiwan's stock market opened higher and strengthened, moving back above the 48,000 level — good news for investors holding shares, but with the index fluctuating at elevated levels, the risk of chasing prices higher is rising as well.

• Heavyweight stocks led the advance, with TSMC, Hon Hai and Delta Electronics all climbing, driving the broader index to extend its gains shortly after the open.
• Memory chip stocks surged again, with Nanya Technology, Winbond, Macronix and Phison all rising, and Phison posting the strongest gain.
• Buying came mainly from foreign investors, who bought a net NT$120 billion over the previous three trading sessions. Funds flowing back into large-cap technology stocks also pushed ETFs such as the 0050 to new highs.
• Continued strength in US chip stocks and a sharp rise in the Philadelphia Semiconductor Index provided the biggest support, though the Dow and the S&P 500 edged lower, indicating that funds are clearly concentrated in AI and semiconductors.
• Oil prices fell, primarily on the recovery of Saudi supply; losses narrowed after Trump said the United States might negotiate an agreement with Iran after the midterm elections.

Outlook: The fourth quarter has always been a strong season for global equity markets, and Taiwan stocks have performed best, with an average gain of nearly 8% over the past five years. But with the index already near a historic high, short-term volatility at these levels and profit-taking pressure are hard to avoid.