Taiwan's currency and stock market both jumped as foreign investors bought back in, a good sign for Taiwan's tech and AI supply chain — but it hangs on Nvidia's results.

• The Taiwan dollar closed at a near two-month high after foreign money flowed back into Taiwan stocks.
• Taiwan's market rose sharply, with foreign investors buying heavily.
• Talk of restarting US–Iran talks and reopening the Strait of Hormuz pushed oil prices down and weakened the dollar, lifting most Asian currencies.
• Trading was thin, showing most investors are still waiting on the sidelines.
• Tonight's US inflation reading, Nvidia's earnings, and Fed chair Warsh's speech at Jackson Hole are the next tests.

Outlook: Strong Nvidia results would pull more foreign money into Taiwan and push the currency higher; a disappointment would likely stall the rally as investors take profits.