Asian Stocks Rebound from Tech Rout Amid Nvidia Probe
Asian markets recovered sharply on Monday, led by Taiwan and Japan, following a Wall Street bounce. The rebound was tempered by an independent investigation into Nvidia's CEO.
Asian equities rallied on Monday, recovering a portion of last week's severe losses. The rebound tracked a recovery on Wall Street as fears of tighter AI regulation eased following the U.S. midterm elections. Sentiment was kept in check, however, by fresh uncertainty surrounding Nvidia's chief executive.
Taiwan's Taiex led the regional advance, jumping as much as 6.4% in its biggest single-day gain since July. Japan's Nikkei 225 climbed 3.5%, while South Korea's KOSPI rose 1.6%. The MSCI Asia Pacific index increased by 2.3%. This followed a brutal sell-off that pushed Japanese and Taiwanese shares into bear-market territory last week. A global equity index had touched a six-month low.
Wall Street and Tech Sector Reversal
The recovery was fueled by a bounce in U.S. markets, particularly in technology shares. A gauge of U.S. semiconductor stocks rose 4.2% late last week. Investors returned to beaten-down shares amid easing concerns that a Democratic-controlled Congress would impose tighter restrictions on the artificial intelligence industry. On Monday, S&P 500 futures gained 0.6% and Nasdaq 100 futures were up 0.7%.
Last week's rout was severe. The Nasdaq 100 lost $2.3 trillion in market value on Thursday alone, triggering a global sell-off. The S&P 500 recorded its steepest weekly decline since April 2025.
Nvidia Inquiry Weighs on Sentiment
The earlier positive momentum was tempered by news from chipmaker Nvidia. The company's board announced an independent investigation into reports that CEO Jensen Huang had been targeted in a foreign intelligence operation. Huang had acknowledged being unfaithful to his wife. The board stated it had confidence in Huang and "no reason to believe Nvidia secrets or U.S. national security had been compromised." Nasdaq 100 futures had initially fallen as much as 1% on the news.
Regional Market Performance
Performance across the region was mixed as investors rotated away from some AI-exposed markets.
| Market | Performance |
|---|---|
| Taiwan Taiex | +6.4% (largest advance) |
| Japan Nikkei 225 | +3.5% |
| South Korea KOSPI | +1.6% |
| Hong Kong Hang Seng | +0.2% |
| Mainland China CSI 300 | +0.3% |
| India Nifty 50 | -0.2% |
| Australia S&P/ASX 200 | -0.2% |
| Singapore Straits Times | Unchanged |
| Malaysia KLCI | -1.2% |
| Philippines PSEi | -0.7% |
Taiwan's rebound followed a seven-session losing streak, its longest since 2022. Authorities moved to stabilise markets. The Financial Supervisory Commission cut the permitted volume of intraday short-selling orders using borrowed securities to 3% of a stock's average daily trading volume, down from 30%. It also raised the minimum margin requirement for short-selling to 130% from 90%. Authorities confirmed a NT$500 billion ($15.2 billion) national stock stabilisation fund remained available for deployment.
In China, October inflation figures offered a mixed signal. Higher energy and commodity costs lifted factory-gate prices, but weak domestic demand meant many manufacturers struggled to pass those increases on to customers.
Commodities and Other Assets
Oil prices declined. Brent crude fell 0.9% to $97.44 a barrel. It had suffered its steepest weekly fall since April 2020, losing more than 16%. U.S. President Donald Trump said further strikes on Iran were "highly unlikely" if negotiations over its nuclear programme made progress.
Investors were awaiting U.S. inflation data on Tuesday for clues on the interest-rate outlook. Markets were pricing in nearly an 80% probability of a Federal Reserve rate increase by year-end.
In corporate news, ANZ Group Holdings shares fell 4.3% despite the Australian lender reporting full-year cash profit that narrowly exceeded analyst expectations. The bank increased provisions amid a more volatile economic environment.
