Taiwan's stock market is holding up better than other major markets, and analysts say the smart move is to buy on down days rather than chase rallies.

• Taiwan shares dropped sharply on Friday on fears the Fed will raise rates, but US stocks closed higher and Taiwan futures bounced overnight.
• Taiwan is the only major market in the US, Europe, or Asia still holding above its key long-term price averages.
• The worry is war and inflation: as long as fighting continues, price pressures stay, and US government bond yields nearing 5% is the level to watch.
• Chipmakers, optical parts, servers, and liquid cooling have strong orders into next year as big US cloud companies keep spending on AI.
• Banks are set for record annual profits on trading gains and fees, giving the market a cushion, with shipping and power-grid builders adding support.

Outlook: Taiwan stocks look likely to stay choppy but resilient, with buying dips favored over chasing gains.