Asian Stocks Rebound as Taiwan Leads Tech Recovery - Asia Market Wrap
Asian equities rebounded from their biggest selloff in more than 18 months, led by Taiwan after local authorities introduced measures to restore investor confidence. Treasuries fell as demand for haven assets eased. The recovery followed Friday’s rebound on Wall Street, where dip buyers emerged after a volatile week of losses driven partly by concerns that a Democratic-controlled Congress could impose tighter regulation on the AI industry. US equity futures extended gains on Monday, despite reports that Nvidia’s board was investigating whether chief executive Jensen Huang had been targeted in a foreign espionage plot. The MSCI Asia Pacific Index jumped 1.9% after plunging 3.9% on Friday, its steepest decline since April 2025. Taiwan’s Taiex surged 4.9%, while Japan’s Nikkei 225 gained 2.3%. S&P 500 futures rose 0.4% and Nasdaq 100 contracts added 0.1%. The rebound followed a brutal week for regional technology stocks, with Japanese and Taiwanese equities both entering bear markets and Samsung Electronics and SK Hynix falling more than 16%. Chinese and Indian shares, however, attracted renewed demand as investors rotated away from AI-exposed markets. Taiwan’s Taiex climbed as much a
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Asian equities rebounded from their biggest selloff in more than 18 months, led by Taiwan after local authorities introduced measures to restore investor confidence. Treasuries fell as demand for haven assets eased. The recovery followed Friday’s rebound on Wall Street, where dip buyers emerged after a volatile week of losses driven partly by concerns that a Democratic-controlled Congress could impose tighter regulation on the AI industry. US equity futures extended gains on Monday, despite reports that Nvidia’s board was investigating whether chief executive Jensen Huang had been targeted in a foreign espionage plot.
The MSCI Asia Pacific Index jumped 1.9% after plunging 3.9% on Friday, its steepest decline since April 2025. Taiwan’s Taiex surged 4.9%, while Japan’s Nikkei 225 gained 2.3%. S&P 500 futures rose 0.4% and Nasdaq 100 contracts added 0.1%. The rebound followed a brutal week for regional technology stocks, with Japanese and Taiwanese equities both entering bear markets and Samsung Electronics and SK Hynix falling more than 16%.
Chinese and Indian shares, however, attracted renewed demand as investors rotated away from AI-exposed markets. Taiwan’s Taiex climbed as much as 6.7%, ending a seven-session losing streak, while Taiwan Semiconductor Manufacturing and MediaTek both advanced at least 4%. Nvidia-related headlines initially weighed on sentiment, with Nasdaq 100 futures falling as much as 1% at the Asian open before reversing those losses. Treasuries declined for a second consecutive session as haven demand faded, with the 10-year yield rising one basis point to 4.87%, following a two-basis-point increase on Friday.