Taiwan's stock market crashed and then clawed back ground after the government announced emergency support, a mixed but ultimately reassuring signal for investors.

• Taiwan's main stock index crashed by its biggest-ever intraday point drop, falling over 3700 points before closing down about 1873 points, dragged down by a global sell-off in AI and chip stocks after the US midterm elections raised doubts about AI data center spending.
• The government's National Stabilization Fund announced it will step in to support the market, and futures trading afterward jumped sharply on the news, more than recovering some of the day's losses.
• Chipmaking and AI-related stocks were hit hardest, with dozens of high-priced stocks hitting their daily limit down, while foreign investors dumped huge amounts of Taiwan's biggest stock, chipmaker TSMC.
• The Taiwan dollar also swung wildly, breaking past 33 to the dollar before recovering as the central bank and exporters stepped in to support it.
• Regulators announced new rules to help stabilize trading starting next week, and the government is publicly urging confidence in Taiwan's tech industry fundamentals.

Outlook: Markets will watch whether AI supply chain fundamentals hold up, which could turn this sell-off into a buying opportunity for top chip and AI companies.