Taiwan Stocks Jump 5.8 Percent as Asia Rebounds From Chip Rout

Updated 07:40 UTC: The final closes are in, and they change the Seoul picture. Tokyo's Nikkei 225 closed up 2.33 percent at 58,775.50, holding a large part of its morning rebound. South Korea's Kospi closed down 0.8 percent at 5,018.85, reversing its late morning gain into a red close. Samsung Electronics ended up 0.64 percent at 189,900 won and SK Hynix gained 0.35 percent to 1,136,000 won. The intraday levels in the report below were recorded at 04:33 UTC, before the closes.

Asian stocks rose sharply on Monday, November 9, as investors bought back the technology and chip shares they had dumped in last week's selloff. Taiwan's Taiex led the region, standing at 42,001.22 at 04:33 UTC, up 2,299.58 points or 5.79 percent, and back above the 42,000 level after the index lost 5,510 points last week. Japan's Nikkei 225 stood at 59,262.79 at the same time, up 1,828.02 points or 3.18 percent.

The rebound followed a rough Friday in Asia and a steadier close on Wall Street. The Nikkei fell 5.97 percent on Friday, and Seoul's Kospi fell about 9 percent the same day, after doubts about demand for computer chips sent technology shares into some of their steepest falls in years. On Friday in New York, the Nasdaq Composite rose 1.09 percent and the S and P 500 gained 0.32 percent, while the Dow Jones Industrial Average slipped 0.46 percent.

Chip stocks lead the way back

Memory chipmakers were among the biggest gainers. SK Hynix rose about 4.6 percent in Seoul and Samsung Electronics gained about 2.4 percent, and the Kospi recovered to 5,114.58 by 04:32 UTC, up 54.89 points or 1.08 percent after reversing an early loss. Hong Kong's Hang Seng Index ended the morning session up 49 points at 24,531, and the Shanghai Composite ended the morning up 0.46 percent at 3,665.94. Markets in Singapore and Malaysia were closed on Monday for a holiday. US stock index futures also firmed, with S and P 500 and Nasdaq 100 contracts both up about 0.5 percent.

Traders largely set aside the weekend's corporate news from the United States, where Nvidia's board has opened an independent investigation into reports that its chief executive, Jensen Huang, was targeted by foreign intelligence. That story broke on Sunday and is covered separately on this site. Asia's move on Monday tracked the chip sector itself, not the headline.

India opens higher, then eases

In Mumbai, the Sensex opened up 327.89 points, or 0.40 percent, at 81,327.29, and the Nifty 50 rose 90 points, or 0.36 percent, to 25,076.40 at 09:15 IST, helped by lower crude prices and optimism about foreign inflows. The opening followed Sunday's special Diwali Muhurat session, in which the Sensex slipped 28.62 points to 80,999.40 and the Nifty fell 43.95 points to 24,986.40, the first red Muhurat close in nine years. By 10:03 IST on Monday the Sensex had eased to 80,798.83, down 0.25 percent, as investors booked profits after a seven session rally. Indian exchanges are closed on Tuesday for Diwali Balipratipada.

Oil holds, gold firms

Brent crude traded in a narrow band between about $97.40 and $98.30 a barrel on Monday morning, little changed on the day, after US President Donald Trump said fresh attacks on Iran were highly unlikely while talks progress. Gold moved the other way: Comex gold was quoted at $4,130.90 an ounce at 10:34 IST, up $56 or 1.37 percent, and spot references put the metal near $4,130.

Why it matters and what comes next

Monday's gains recover only part of last week's losses, and the mood is still fragile. The selloff began with the November 5 rout in AI linked shares in the United States and spread to Asia's chip heavy markets within a day. The first full test of the rebound comes at the US open on Monday night, when Nvidia trades for the first time since its board announced the investigation. If Tokyo and Taipei hold their gains into the close, Asia will have steadied. If they fade, last week's question returns with them: how much of the AI trade is priced on demand that has not yet arrived.

This report uses market snapshots from Monday morning in Asia. Prices are delayed and can move before the close. This is not financial advice. Do your own due diligence.