Taiwan's market gave up early gains and closed lower, but state-backed banks piled into memory and AI parts makers — a good sign for those stocks, a worrying one for the broader index.

• The Taiwan index opened strong on a US rebound, then sold off into the close and lost its short-term support levels.
• Eight state-run banks bought heavily into memory chip makers, with Macronix a favorite after Morgan Stanley named it a winner from AI and set a NT$220 target.
• Cooling parts maker I-Chiun also drew big buying after getting into the supply chains of Nvidia, Google and Amazon; its monthly profit doubled and high-priced products should pass half of sales next year.
• Money rotated out of tech and into banks, where several financial holding stocks jumped to record highs.
• Trading volume shrank, and two small-cap stocks were put under trading restrictions for five days.

Outlook: The market looks stuck in a high-level chop, with buyers favoring memory, AI cooling and financial stocks over the broader tech complex.