Taiwanese optical stocks bounced back, and lens maker Genius Electronic Optical erased an early dip to trade sharply higher — good news for suppliers riding the iPhone cycle.

• Genius Electronic Optical dropped early in the session, then buyers stepped in and pushed it up more than 5% at one point.
• Smaller optical makers led the rebound, with the whole group recovering.
• Apple's product launch on the 10th is driving the move, since the third quarter is the busy season for its suppliers.
• The company says phone lens orders are steady and it has started sending samples of co-packaged optics, a newer product line for data centers.
• Foreign investors have bought the stock six days running, though the exchange has put it under trading curbs until the 8th because of wild price swings.

Outlook: The Apple launch and peak supplier season should keep optical names in focus, but the trading restrictions may cap moves until they lift.