Taiwanese investors are no more willing to buy stocks than last month, and the worry is that US inflation and a weakening American consumer could drag Taiwan's market down.

• Overall consumer confidence in Taiwan edged up in August, but the piece measuring whether it's a good time to buy stocks slipped slightly, staying flat at a low level.
• Taiwan's market recovered in August after a rough July that briefly took the index below 40,000, so weak stock confidence stands out.
• The Iran conflict is keeping oil prices high, and that inflation is eating into what American families can spend.
• US retail sales have flattened to zero growth, the savings rate has fallen to under 3% from a long-run 8%, and household debt is at $18.8 trillion with credit card debt above $1.25 trillion.
• If the US slides into stagflation, American companies may cut AI spending — and Taiwan's exports lean heavily on that AI equipment demand.

Outlook: With US interest rates high and several AI-linked companies burning cash, doubts about AI investment are likely to keep a lid on Taiwan stock sentiment.