Foreign investors kept buying Taiwanese stocks for a third straight day, piling into memory chip and panel makers, but the wider market still fell — a mixed signal for local investors.

• The Taiwan index slipped 0.47% after swinging more than 550 points, dragged down by heavy selling in AI-related names.
• Foreign money bought NT$13.3 billion worth of stocks, while local dealers and investment trusts were net sellers.
• Memory chip makers like Winbond and Nanya Tech drew the biggest foreign buying after strong August sales, along with panel maker AUO.
• Financial stocks were bought as a safe hedge, while foreign investors dumped contract chipmaker UMC and AI server maker Wistron.
• Taiwan's inflation stayed above the 2% warning line for a fourth month, with restaurant prices rising the fastest in eight months.

Outlook: Money looks set to keep rotating out of AI names and into memory chips and financials, with inflation expected to stay above 2% in September.