Taiwan's main stock index swung from a sharp morning drop to a strong close, a relief for investors but a wild ride that left many unsure the bottom is in.

• The index fell more than 500 points in the morning and broke below a key support level.
• Afternoon buying flooded back and pushed the index up nearly 1,000 points from its low.
• Chipmakers TSMC and UMC, along with memory stocks, led the turnaround, joined by financial, plastics and optoelectronics shares.
• The index closed up almost 1%, back above the 45,000 mark, on heavy trading volume.
• Retail investors were stunned by the reversal, with many asking whether it is a real bottom or a trap to lure buyers in.

Outlook: The rebound puts Taiwan stocks back on firmer footing, but traders stay cautious until the market shows it can hold these levels.