Asian stock markets advanced on Monday, led by gains in Taiwan and Japan, as technology shares rebounded following a recovery on Wall Street. Investors also assessed the implications of Democratic victories in the US midterm elections, concerns over artificial intelligence data-centre investments and the possibility of higher interest rates.
Taiwan's Taiex led regional gains, rising 5.6%, supported by a 5.6% jump in shares of chipmaker Taiwan Semiconductor Manufacturing Company (TSMC).
The recovery followed gains in US technology stocks on Friday, offering some relief after a sharp sell-off earlier in the week. The earlier decline was driven partly by concerns that Democratic victories in the midterm elections could slow the construction of artificial intelligence data centres, particularly in Texas.
Voters across political parties have expressed concerns about artificial intelligence and opposed increases in electricity bills linked to the growing energy requirements of data centres.
Japan's Nikkei 225 gained 3.4% to 59,411.34 in early Monday trading. Shares of chip equipment maker Tokyo Electron rose 6.5%, while Advantest, which manufactures testing equipment, advanced 5.1%.
SoftBank Group moved in the opposite direction, falling 2.9% as it sought to salvage a $5.4 billion robotics deal with Switzerland's ABB after Chinese regulators rejected the transaction.
South Korea's Kospi climbed 1.5% to 5,137.22. Samsung Electronics gained 2.7%, while chipmaker SK Hynix advanced 3.9%. The gains were relatively modest for companies whose share prices have experienced sharp swings in recent weeks as investors moved in and out of AI-related stocks.
Elsewhere, Hong Kong's Hang Seng Index edged up 0.2% to 24,525.58, while the Shanghai Composite Index added 0.4% to 3,663.91. Australia's S&P/ASX 200 slipped 0.1% to 9,011.50.
On Friday, the S&P 500 gained 0.3%, trimming its weekly loss to 2.7%, its worst performance since US President Donald Trump unsettled markets in April 2025 with his "Liberation Day" tariffs.
The Dow Jones Industrial Average fell 0.5%, while the Nasdaq Composite rose 1.1%.
The gains brought some stability to global markets after a widespread sell-off. Stock indexes in Tokyo and Seoul had each fallen 6% following Wall Street's sharp decline on Thursday.
Nvidia provided the biggest boost to the S&P 500 on Friday, with its shares rising 2.8%. The gain followed declines of 9.3% and 3.2% in the previous sessions.
The chipmaker, which has become a central player in the global artificial intelligence boom, said on Sunday that it had opened an investigation into reports that its chief executive, Jensen Huang, was the target of a foreign intelligence operation.
The development followed Huang's acknowledgement that he had been intimate with a business executive whom, according to The New York Times, US intelligence officials had determined was gathering information for Beijing.
Nvidia's processors power many of the data centres and computing systems used to train and operate AI models. Its advanced chips have also been a focus of US export restrictions aimed at limiting China's access to cutting-edge semiconductor technology.
"The scrutiny surrounding Jensen Huang reaches far beyond a personal scandal, touching the increasingly sensitive intersection of US technology leadership, China and national security," Stephen Innes of SPI Asset Management said in a commentary. (with inputs from Associated Press)