Asian equities trade higher on Monday, led by a 5.30% surge in Taiwan's TAIEX, as markets stabilize following a sharp AI-driven sell-off that marked the steepest weekly decline in two decades.
Taiwan's benchmark climbed around 5.30% to 41,800 on Monday, rebounding from its steepest weekly drop in two decades driven by AI profitability fears. The sharp recovery suggests bargain-hunting in tech-heavy names, though last week's rout shows the market remains fragile on AI sentiment.
Japan's benchmark rose 2.90% to 59,090, joining the regional rebound after the AI-driven sell-off. However, BoJ minutes from the September meeting, released last week, show most policymakers agreed further rate increases would be appropriate as underlying inflation nears the 2% target, a potential headwind for equities.
A company-led investigation by Nvidia into whether its CEO Jensen Huang had been the target of a foreign spying effort could stoke volatility in the stock, analysts said. The direction is uncertain but such an unusual governance and security probe adds near-term risk to a stock already central to AI sentiment.
China's main stock market index gained a modest 0.35% to 3,660, a routine move that signals only mild participation in the regional rebound. The gain is small and offers little directional signal for the coming days.
The Hong Kong index edged up just 0.13% to 24,520, essentially flat and offering no material directional signal.
Asian markets show signs of recovery on Monday as investors engage in bargain-hunting following a volatile week. Taiwan's TAIEX leads the regional gains with a 5.30% rise to 41,800, while Japan's Nikkei 225 adds 2.90% to reach 59,090 despite potential headwinds from future Bank of Japan rate hikes.
The index is rebounding around 5.30% to 41,800 after suffering its steepest weekly drop in two decades last week, when fears about AI profitability and infrastructure demand triggered a rout.
According to the minutes of the September meeting released last week, most BoJ policymakers agreed that further interest rate increases would be appropriate as underlying inflation approaches the central bank's 2% target.
Nvidia is running a company-led investigation into whether its CEO Jensen Huang had been the target of a foreign spying effort, which analysts say could stoke volatility in the stock.