Asian stocks recover after steep artificial intelligence sell-off

Summarised from 2 outlets · Updated 9 Nov, 02:26 · Archive

Asian share markets rose after falling sharply last week amid concerns about artificial intelligence profitability.

Asian stock markets made a steady start on Monday, recovering after a volatile week that saw sharp declines in technology-heavy indices. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8 per cent, reversing the previous week's 4.6 per cent fall. Japan's Nikkei index added 2.5 per cent while Korean shares made small gains. Taiwan's benchmark rose about 2.5 per cent after recording its heaviest weekly drop for two decades.

The earlier sell-off had been triggered by concerns about artificial intelligence profitability and infrastructure demand, compounded by US midterm election results that raised worries about increased regulation of AI and data centres. Rising interest rates had already weakened the AI trade, exacerbating the decline. On Friday, Wall Street rallied to end the chaotic week, helping to ease market nerves.

Technology companies are set to report earnings this week, including CoreWeave, Applied Materials and Cisco Systems, which will test the profitability of AI investments amid massive infrastructure costs. A company-led investigation into Nvidia CEO Jensen Huang's relationship with an alleged Chinese spy could also cause market volatility. Kyle Rodda, senior financial market analyst at Capital.com, cautioned that 'the markets are far from being out of the woods yet'.

How it is being reported

• Asian stocks steady as AI, Mideast jitters recedeThe MSCI's broadest index of Asia-Pacific shares outside Japan has risen, boosted by gains in Japan and South Korea.Perth Now · 9 Nov, 02:07
• Asian stocks steady as AI, Mideast jitters recedeThe MSCI's broadest index of Asia-Pacific shares outside Japan has risen, boosted by gains in Japan and South Korea.The West Australian · 9 Nov, 02:07

In this story: Japan · South Korea · Taiwan · United States · Nvidia · Jensen Huang · Capital.com

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