Taiwan's stock market is climbing fast and nearing its all-time high, which is good for investors but comes with rising risk of sharp swings.

• Taiwan's main index jumped past 46,000, well above its recent average, driven by strong AI-related stocks.
• Foreign investors came back as big buyers, and local funds kept adding, pushing daily trading volume toward record levels.
• The rally is being fueled by big cloud companies who, despite weaker cash flow, are spending even more on AI — good for Taiwan's tech suppliers.
• After the long run-up, the index is now in a "pressure zone" where prices swing easily, and Friday saw a pullback as impatient buyers sold.
• US stocks also hit new highs after inflation fears eased, and South Korea's market bounced 20% off its lows.

Outlook: Expect more choppy trading between roughly 45,000 and 48,000, with advice to buy on dips rather than chase prices higher.