Taiwan's stock market tumbled on Monday as foreign investors made large-scale adjustments to their holdings — bad news for shareholders, though a sharp late-session rally showed buying interest is still there.

• The index fell more than 880 points at one point during the session before closing down 202 points, with electronics stocks leading the decline.
• Foreign investors switched from net buyers to net sellers, offloading nearly NT$14.4 billion in a single day.
• King Yuan Electronics saw the heaviest selling, closing down nearly 5% — the biggest casualty of the foreign withdrawal.
• Heavyweight stocks including Yageo, UMC, Innolux and ASE were also sold in large volumes.
• Optoelectronics, AI, financial and traditional industry stocks bucked the trend and moved higher, and with the MSCI quarterly rebalance taking effect, a surge in late-session volume lifted the market and pared the day's losses.

Outlook: With foreign investors turning more cautious, Taiwan stocks may see continued volatility in the near term, with electronics under pressure.