Asian stocks rebound as Nikkei climbs 2.33% after AI sell-off in early November

A rebound after a sell-off

Asian stock markets rose on Monday, 9 November, as buyers returned to technology shares after a sell-off that pushed Japan's index into bear territory. The Nikkei 225 had given up 5,855.34 points in the week of 2 November, its largest weekly drop on record, as investors feared tighter artificial intelligence rules in the United States after the Democrats' sweeping victory in the midterm elections. At 11:06 a.m. Tokyo time the index stood at 59,394.41, up 1,959.64 points or 3.41% from Friday's close, according to Jiji Press. A securities firm official told Jiji that a wide range of issues was drawing purchases, although concerns about tougher AI rules still weighed on market participants. ANSA reported that the Nikkei closed 2.33% higher at 58,775.50, a gain of 1,340 points.

Taiwan and Tokyo chip shares lead the gains

Taiwan posted the strongest close in the region, with its benchmark up 4.94% at the close according to ANSA. Earlier in the session, Il Sole 24 ORE reported that the Taiex had jumped 5.6% on the back of chipmaker TSMC, which also gained 5.6%. In Tokyo, Tokyo Electron rose 6.5% and Advantest, which makes testing equipment, climbed 5.1% in early trade. ANSA also reported Hong Kong, Shanghai and Shenzhen higher while trading was still under way, with Hong Kong up 0.23%, Shanghai up 0.44% and Shenzhen up 0.28%. Mumbai slipped 0.27% in the same report. The chart below sets out the index moves ANSA reported on Monday.

Taiwan (close)4.94%

Tokyo (close)2.33%

Hong Kong (intraday)0.23%

Shanghai (intraday)0.44%

Shenzhen (intraday)0.28%

Mumbai-0.27%

Taiwan (close)

4.94 %

Tokyo (close)

2.33 %

Hong Kong (intraday)

0.23 %

Shanghai (intraday)

0.44 %

Shenzhen (intraday)

0.28 %

Mumbai

-0.27 %

Data from the article text

Chip stocks and the AI trigger

Samsung Electronics and SK Hynix, both suppliers of memory chips to the AI supply chain, started the week up 2.6% and 3.7%, dpa reported, while the Kospi was 1.2% higher at 11:00 local time. ANSA's Monday report instead put Seoul's index 0.81% lower, and the sources do not reconcile the two South Korean readings. The Wall Street sell-off in the week of 2 November was the root of the slump. On Thursday, 5 November, companies in the S&P 500 lost nearly three trillion US dollars (2.7 trillion euros) in combined market value, according to n-tv. Big Tech found some relief from Friday's gains on Wall Street, while Il Sole 24 ORE said fears that Democratic midterm wins could slow the construction of AI data centres, particularly in Texas, had also weighed on sentiment.

SoftBank, the yen and the calendar

SoftBank Group shares fell 2.9% while the company tried to rescue a robotics deal worth 5.4 billion US dollars with Switzerland's ABB, a deal Chinese regulators had rejected, according to Il Sole 24 ORE. ANSA reported that financial stocks were supported by expectations that the Bank of Japan could raise interest rates by the end of the year. In currency markets the yen traded at 158.20 to the dollar and 176.60 to the euro, while the euro stood at 1.116 against the dollar in early trade. Japan's finance ministry published data on Monday showing that it had spent nearly 8,000 billion yen (45.3 billion euros) on 30 July to support the yen, the largest such operation ever.

Oil, Hormuz and the day's calendar

Il Sole 24 ORE reported that oil was losing ground on Monday morning. n-tv flagged the risk of higher oil prices linked to shipping through the Strait of Hormuz, which remains massively restricted and is weighing on investor sentiment. ANSA noted that geopolitical tensions, including the conflict in the Middle East, remained in focus. On the calendar for the day, ANSA listed Germany's trade balance and the New York Fed's inflation expectations.