Strong gains in Taiwan's AI supply chain stocks are good news for investors, but minutes from the Federal Reserve's latest meeting pointed to the possibility of a rate hike, adding pressure to global markets.

• Glass fabric maker Fu Chiao surged to its daily limit in early trading on heavy volume, driven mainly by demand for high-end glass fabric as AI server specifications are upgraded.
• Fu Chiao's first-half revenue rose more than 40% year on year, while after-tax net profit jumped more than eightfold, and the company expects momentum to continue in the second half.
• Actively managed ETFs began buying heavily after their combined assets topped NT$1 trillion, with Fu Chiao ranking among the top three additions last week, strengthening its shareholder structure.
• Taiwan shares opened higher and extended gains today, climbing back above 45,000 points and the quarterly moving average, with TSMC and Hon Hai advancing.
• Minutes from the Fed's July meeting showed most officials believe rates would have to rise if inflation does not cool, raising market expectations of tighter monetary policy.

Outlook: Demand for AI materials and memory should continue to support the market in the near term, but concerns over rate hikes may limit the upside for Taiwan stocks.