Asian technology stocks rebounded on Monday, led by gains in Tokyo, Seoul and Taipei after a sharp sell-off the previous week. Japan’s Nikkei 225 rose more than 3%, while Taiwan’s Taiex gained about 5% as chipmakers rallied.
Shares of Taiwan Semiconductor Manufacturing Co. climbed nearly 6%. In South Korea, SK hynix and Samsung Electronics each gained around 3%, helping lift the Kospi. Hong Kong and Shanghai also advanced, while Sydney, Wellington and Manila edged lower.
The gains followed losses in technology stocks after the US midterm elections. Investors have been weighing whether the new Congress might seek to restrict data-centre construction, a possibility that has raised concerns about investment and jobs. No such policy decision was reported.
Investors assess whether the rally can last
Market watchers were looking for signs that the rebound reflected more than short-term buying. Sally Auld of National Australia Bank said investors would be assessing whether the gains represented short-covering, bargain hunting or the start of a more sustained recovery.
Concerns about AI regulation, capital spending and companies’ ability to generate free cash flow have weighed on technology shares in recent weeks. Auld said those questions were unlikely to be resolved soon, even as lower share prices had made some technology valuations look less expensive.
Investors were also preparing for fresh US inflation data after figures released on Friday showed October job creation was much stronger than expected. The data could influence the Federal Reserve’s next interest-rate decision in December; markets were pricing in an 80% chance of an increase, according to the Euronews report.
Nvidia also drew attention after the company said it had opened an independent investigation following reports concerning chief executive Jensen Huang and a person described as suspected of spying for China. Nvidia’s board said it had no reason to believe company secrets or national security had been compromised. The company said Huang remained committed to leading it.