Asian stocks rebound after AI selloff

Taiwan’s Taiex index jumped 4.9% on Monday, leading a regional rally in Asian markets. The gain followed a sharp recovery in artificial intelligence stocks on Wall Street the previous Friday. TSMC, a major computer chipmaker based in Taiwan, saw its shares rise 4.7%, driving much of the index’s movement.

The relief in tech shares came after a volatile week for investors. Earlier in the week, stocks fell on concerns that Democratic victories in the U.S. midterm elections could slow the construction of AI data centers. Voters across the political spectrum have expressed worry about rising power bills tied to these facilities. The U.S. midterm results left markets uncertain about the future of the energy-hungry sector.

In Tokyo, the Nikkei 225 index closed 2.3% higher at 58,775.50. Tokyo Electron, a chip equipment maker, gained 2.8% after pulling back from earlier gains. Advantest, which manufactures testing equipment, rose 1.3%. SoftBank Group shares fell 4.2% as the company tried to save a $5.4 billion robotics deal with Switzerland’s ABB. Chinese regulators had previously rejected that partnership.

South Korea’s Kospi index fell 0.8% to 5,018.85. Samsung Electronics gained 0.6% and SK Hynix rose 0.4%. These modest gains followed weeks of volatile trading in AI-related stocks. In other Asian markets, the Hang Seng index in Hong Kong rose 0.1% and the Shanghai Composite added 0.3%. Australia’s S&P/ASX 200 index edged up 0.1% to 9,029.70.

U.S. futures pointed to further gains early Monday. Contracts for the S&P 500 rose 0.3%, while Dow Jones Industrial Average futures climbed 0.6%. On Friday, the S&P 500 rose 0.3%, limiting its weekly loss to 2.7%. That was the index’s worst weekly performance since President Donald Trump’s tariff announcements in April 2025. The Nasdaq composite climbed 1.1% on Friday, while the Dow dropped 0.5%.

Nvidia, a central player in the AI race, saw its stock rise 2.8% on Friday after drops of 9.3% and 3.2% earlier in the week. The company announced on Sunday that it is investigating reports that CEO Jensen Huang was the target of a foreign intelligence effort. This follows Huang’s acknowledgment of a personal relationship with a business executive. U.S. intelligence officials told The New York Times that the executive was gathering information for Beijing.

Stephen Innes of SPI Asset Management said the scrutiny of Huang touches on the intersection of U.S. technology leadership, China, and national security. Despite the recent market swings, the S&P 500 remains only 5.7% below its all-time high set last month. A report released Friday showed U.S. employers hired more workers than expected last month, suggesting the economy is still growing despite high inflation.