Asia Stocks Rebound: Nikkei Jumps 2.5% After AI Rout

Asia stocks rebounded on Monday, November 9, with Japan's Nikkei up about 2.5% and Taiwan up about 2.5%, after last week's AI-driven sell-off sent tech-heavy markets to some of their steepest falls in years. The MSCI index of Asia-Pacific shares outside Japan rose 0.8% after sliding 4.6% last week, and U.S. stock futures were a touch higher as traders looked ahead to U.S. inflation data and a heavy week of tech earnings.

What happened in Asia on Monday?

Asian markets made a steady start to the week, wobbling into positive territory after a wild week dominated by doubts about demand for computer chips. Reuters reported the Nikkei adding 2.5%, Taiwan's benchmark rising about 2.5%, and Korean shares making small gains in early trade. A separate CNBC TV18 read put the MSCI Asia Pacific Index up 0.6%, the Nikkei up 2.04% with the Topix up 2.82%, and Taiwan's TAIEX up 2.84%, with the Kospi slipping 0.25% at that point in the session — a reminder that the numbers moved as the morning went on.

The bounce followed Friday's steadier close on Wall Street. A gauge of U.S. semiconductor shares jumped 4.2% on Friday, with Nvidia gaining about 3% and Micron about 5%, helping calm nerves after heavy AI-related selling through the week.

Why is this rebound blowing up?

Last week was brutal for the AI trade. Taiwan notched its heaviest weekly drop in two decades, according to Reuters, as fears about AI profitability and infrastructure demand turned into a rout following wins by Democrats in the U.S. midterm polls. Japanese and Taiwanese stocks were pushed into technical bear markets during the sell-off, and a global equity gauge hit a six-month low.

That scale of fall is why a 2.5% bounce matters. It is the first clear sign that bargain hunting is returning to the markets that fell hardest — but traders are describing it as stabilisation, not a clean reversal. Australia was a notable exception early on, with the S&P/ASX 200 slipping in early trade even as Tokyo led the region higher.

Key facts

• Nikkei: up about 2.5% on Monday, per Reuters; intraday reads ranged from +1.39% early to +2.45% later in the morning.
• Taiwan: up about 2.5% per Reuters and 2.84% in the CNBC TV18 read, after its heaviest weekly drop in two decades.
• Regional index: MSCI Asia-Pacific shares outside Japan +0.8%, after -4.6% last week.
• U.S. futures: S&P 500 e-minis a touch higher on Monday morning in Asia.
• Dollar: the dollar index was last at 102.2, firm on growing bets on a Federal Reserve rate hike.
• Fed bets: markets priced nearly an 80% chance of at least a 25-basis-point hike at the Fed's December meeting, according to the CME FedWatch Tool cited by Reuters.
• Oil: Brent crude traded below $98 a barrel, at about $97.42 in early Asian hours, extending last week's steep slide.

Why are Fed hike bets rising?

A stronger-than-expected U.S. jobs report pushed traders to raise the odds of another Fed increase next month. That matters for Asia because a firmer dollar and higher U.S. rates usually tighten financial conditions for the region. Reuters said a U.S. CPI reading due on Tuesday could further cement expectations for a December hike — making Tuesday's inflation print the next big test for the rebound.

What happens next?

Earnings are the other test. Results this week from CoreWeave, Applied Materials and Cisco Systems are set to put the profitability of AI ambitions under the spotlight, given the massive cost of the AI build-out. If those companies show real cash returns, Monday's bounce in Tokyo and Taipei has support. If they disappoint, the same chip and AI names that led last week's rout could come under pressure again.

For now, the story is narrow and factual: Asia has steadied after a historic AI sell-off week, led by Japan and Taiwan, while the dollar stays firm and traders wait for U.S. CPI and tech earnings. This article reports what happened and why markets reacted; it is not investment advice.

Sources: Reuters — Asian stocks steady as AI, Mideast jitters recede; Finimize — Asia stocks find their footing; CNBC TV18 via TradingView — Asia open, November 9; JournalArta — Asia Open: Nikkei climbs, ASX slips

FAQ

How much did the Nikkei rise on Monday, November 9?

About 2.5%, according to Reuters. Intraday readings varied during the morning, from +1.39% early to around +2.45% later.

Why did Asia stocks rebound after last week?

They bounced after a steep AI-driven sell-off, helped by Friday's rebound in U.S. semiconductor shares, including gains for Nvidia and Micron, and by bargain hunting in the hardest-hit markets.

What is the chance of a Fed rate hike in December?

Markets priced nearly an 80% chance of at least a 25-basis-point hike, according to the CME FedWatch Tool cited by Reuters, after a strong U.S. jobs report.

What will test the rebound this week?

U.S. CPI inflation data due Tuesday and earnings from CoreWeave, Applied Materials and Cisco Systems, which will be read as a test of AI profitability.