Business · Markets · 10 hrs ago

Asian stocks rebound after sharp AI-linked sell-off

Asian stocks rebound after sharp AI-linked sell-off

Asian stocks rebounded on Monday after a sharp sell-off driven by worries about artificial intelligence companies and possible US regulation.

The gains were led by Taiwan's market, which surged after officials announced steps to reassure investors, including limits on short selling and readiness to use a share-stabilisation fund.

Japan and South Korea also rose, as chipmakers and other technology companies recovered some losses.

The earlier falls reflected doubts about whether huge investments in AI and data centres will generate enough profit, as well as concern that a newly Democratic-controlled US Congress could impose tighter rules.

Investors are also watching an Nvidia board investigation into possible foreign spying involving CEO Jensen Huang, though its market impact eased as Asian trading progressed.

US inflation data due Tuesday could shape rate expectations, with traders assigning nearly an 80% chance to a Federal Reserve rate increase before year-end.

Investors will watch this week's market performance and technology-company earnings for signs of whether the rebound can last.

7 sources

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What people are saying

Kyle RoddaSenior financial market analyst at Capital.com
The markets are far from being out of the woods yet,
via Business Standard
Tim WatererChief market analyst at KCM Trade
Asian markets are regaining their balance this morning, as investors digest the recovery in US technology stocks and the latest developments involving Jensen Huang, Nvidia's chief executive.
via Al Eqtisadiah
Sally OldAnalyst at National Australia Bank
Investors will watch market performance during the week to determine whether the recent gains reflect short covering and bargain buying after the declines, or the start of a more sustainable recovery.
via Asharq Al-Awsat