Asian markets rally as AI stock concerns ease

Taiwan’s Taiex index led the surge, climbing 5.6%, largely due to a strong performance from computer chipmaker TSMC, which also rose 5.6%. Gains in Taiwan mirrored positive movement in regional technology stocks, building on Friday’s relief for U.S. AI stocks.

Tokyo’s Nikkei 225 index jumped 3.4% to reach 59,411.34. Chip equipment manufacturers Tokyo Electron and Advantest saw increases of 6.5% and 5.1% respectively. However, SoftBank Group’s shares dipped 2.9% after the company attempted to salvage a $5.4 billion robotics deal with ABB, a deal that had been rejected by Chinese regulators.

In South Korea, the Kospi advanced 1.5% to 5,137.22, with Samsung Electronics Corp. up 2.7% and SK Hynix rising 3.9%. These gains, while modest, followed recent volatility in AI-related share prices. Hong Kong’s Hang Seng edged up 0.2% to 24,525.58, and the Shanghai Composite index added 0.4% to 3,663.91. Australia’s S&P/ASX 200, however, edged 0.1% lower to 9,011.50.

On Friday, the S&P 500 rose 0.3%, limiting its weekly loss to 2.7%, the largest decline since April 2025 when U.S. President Donald Trump imposed “Liberation Day” tariffs. The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite climbed 1.1%. Nvidia, a key player in the AI sector, contributed significantly to the S&P 500’s gains, rising 2.8% after experiencing previous losses.

Nvidia recently faced scrutiny after CEO Jensen Huang acknowledged a personal relationship with a business executive who, according to reports, was gathering information for Beijing. The company has launched an investigation into the matter.

Despite recent fluctuations, the S&P 500 remains only 5.7% below its all-time high. A recent report indicated that U.S. employers added more jobs last month than anticipated, suggesting economic resilience despite ongoing inflation. This positive economic data could mitigate concerns about the impact of potential slowdowns in AI data center construction, but also raises the possibility of further interest rate hikes by the Federal Reserve in December.

Brent crude oil slipped 0.2% to $98.10 per barrel, while U.S. benchmark crude gained 0.2% to $91.04 per barrel. The U.S. dollar decreased to 158.31 Japanese yen from 158.36 yen.