The rebound suggests investors see last week’s AI selloff as a positioning shakeout rather than a turn in the cycle. That fits the wealth managers’ view this morning and the strong AI-led export numbers from China. Holding up despite Nvidia’s fall points to the market treating that issue as company-specific for now. Lower oil prices are a second tailwind, especially for energy importers such as Korea and Japan, though Brent near $92 keeps the energy cost burden high. The Nikkei’s hesitation below 61,000 suggests the rebound may need fresh catalysts, with US CPI later today the next test for tech sentiment.
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Asia’s AI trade has shaken off Friday’s scare and even Nvidia’s stumble, but Tokyo’s reluctance above 61,000 shows the conviction isn’t fully back.
Summary:
- The Nikkei rose about 2.7% near 60,400 and the Topix about 2.2%, recouping most of Friday’s near-6% drop over two sessions
- The KOSPI jumped more than 4% to around 5,240, led by Samsung Electronics and SK Hynix
- SoftBank surged over 14%, with Advantest, Tokyo Electron and Kioxia also sharply higher
- The gains came despite Nvidia’s 4.2% overnight fall, which strategists see as stock-specific
- Lower oil prices, on hopes for an end to the US-Iran war, lifted Korean airlines and supported sentiment
Japanese and South Korean stocks extended their rebound on Tuesday as AI-related shares climbed again, recovering much of the ground lost in Friday’s tech-led selloff.
Japan’s Nikkei 225 was up around 2.7% near 60,400 in early afternoon trade, while the broader Topix gained about 2.2%. In Seoul, the KOSPI jumped more than 4% to around 5,240, with the tech-heavy KOSDAQ up nearly 4%.
Chip and AI names led the way. In Tokyo, SoftBank Group surged more than 14%, chip equipment makers Advantest and Tokyo Electron gained around 5% to 6%, and memory maker Kioxia jumped more than 7%. Kioxia was a key driver of the Nikkei’s run to a record high in June but has since been hit by weaker sentiment toward AI shares. In Seoul, Samsung Electronics rose about 5% and SK Hynix around 6%.
The gains came despite a 4.2% fall in Nvidia overnight amid controversy surrounding its chief executive, Jensen Huang. A Tokyo-based strategist said the market so far sees the issue as specific to Nvidia rather than a problem for the wider industry.
The Nikkei had fallen nearly 6% on Friday on concerns that Democratic gains in the US midterm elections could slow AI investment. Two sessions of strong gains have now recouped most of those losses, though the same strategist said investors were reluctant to push the index above 61,000.
Lower oil prices added support, particularly in Seoul. Hopes for an end to the US-Iran war pulled crude lower and eased inflation worries, helping Wall Street close higher overnight. Korean Air and Asiana Airlines each rallied more than 11%. Brent crude was trading around $92 a barrel and US WTI near $86, both modestly lower on the day.
Elsewhere in the region, gains were more modest. Hong Kong’s Hang Seng was up about 0.5% and Shanghai around 0.3%. In Tokyo, Toyota was the biggest drag on the Topix. The yen was little changed around 158 per dollar after the Bank of Japan’s Summary of Opinions earlier in the session.
This article was written by Eamonn Sheridan at investinglive.com.