Taiwan's stock market and currency both went through a wild one-day swing, bad news for AI-linked stocks but a relief turnaround for the currency by day's end.

• Taiwan's stock index crashed as much as 3,737 points in early trading, the biggest intraday drop ever, before clawing back to close down about 1,873 points as the government stepped in to calm markets.
• The sell-off was triggered by fears that the US midterm elections could lead to tighter AI policy, which hit AI and chip stocks worldwide, including Taiwan's.
• Foreign investors dumped huge amounts of Taiwan stock and pulled money out of the country, pushing the Taiwan dollar below 33 to the US dollar for the first time in over a year and a half.
• The central bank, along with exporters and some banks and insurers, stepped in during the afternoon to buy the Taiwan dollar, reversing the currency's losses and pushing it to a two-week high by the close.
• Regulators added extra trading restrictions on a couple of volatile stocks and pledged more market-stabilizing measures starting next week.

Outlook: Foreign money is still expected to flow out short-term, so the Taiwan dollar will likely stay choppy and weak, while stocks may get a reprieve only if AI companies' underlying business results stay solid.