This is good news for Taiwan's stock market and chip stocks, as political uncertainty eased and US markets bounced back strongly.

• Democrats won control of both chambers of Congress in the US midterms, which calmed market nerves about political gridlock.
• US stock futures jumped sharply overnight, and that optimism spread straight to Taiwan's market.
• Taiwan's index futures opened higher and then shot up over 1,000 points in a single session, with TSMC futures also rising.
• Gold and silver prices jumped too, as investors moved money into safe-haven assets, while US government bond yields fell across the board.
• Taiwan's cash market had hit a fresh low earlier in the day but bounced back hard by the close, suggesting the recent sell-off may be running out of steam.

Outlook: Analysts say Taiwan's recent low could become a short-term support level, with the next resistance zone higher up from October's trading range.