Markets are rebounding from the tech rout triggered by the Democrats’ landslide victory in the US midterm elections.
Published on November 9, 2026
Asian stock markets have rebounded from last week’s tech rout triggered by the Democratic Party’s landslide victory in the U.S. midterm elections.
Key indexes in Japan, Taiwan and Australia rose on Monday, following a rebound on Wall Street on Friday.
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Taipei’s Taiex led the gains, closing up 4.94 percent.
In Tokyo, the benchmark Nikkei 225 rose 2.33 percent, while the S&P/ASX 200 in Sydney edged up 0.099 percent.
In Seoul, the KOSPI index fell 0.8 percent after rising about 1.7 percent.
Hong Kong’s Hang Seng Index fell 0.22 percent.
“We view the recent withdrawal of AI infrastructure names as a function of tighter financial conditions, increasing scrutiny of credit availability for neocloud companies and uncertainty over potential delays in AI development following the US midterm election results,” Cameron Chui, Asia equity strategist at JP Morgan Private Bank in Hong Kong, told Al Jazeera.
“That being said, demand and adoption of AI remains strong, investment visibility for 2027 remains high, and a significant reset in valuations has already taken place that at least partly addresses these concerns,” Chui added.
“In Asia, we see attractive upside potential in Taiwan and South Korea, while recognizing that earnings downside risks have materially increased for 2028, broadening the range of potential outcomes.”
Futures on Wall Street’s benchmark S&P 500 index were up 0.17 percent at 0730 GMT, while those linked to the tech-heavy Nasdaq 100 were down 0.24 percent.
Futures for both indexes fell earlier after U.S. chip giant Nvidia announced it would investigate its CEO Jensen Huang over a romantic relationship he had with a woman accused of being a Chinese spy.
Nvidia’s board said that while it had confidence in Huang and had no reason to believe national security or company secrets were compromised, an independent investigation would review “all available information.”
The board said Huang supports the investigation and is committed to fully cooperating.
“The Board prioritizes the national and economic security of the United States, which is paramount to the interests of NVIDIA and its shareholders,” the company said.
The stock market rebound comes after U.S. midterm results sparked a $2.5 trillion selloff on Wall Street on Thursday, amid concerns that Democratic-controlled legislatures could slow the deployment of data centers used to power artificial intelligence.
The tech rout spread to Asia on Friday, with the Nikkei 225 and KOSPI plunging about 6 percent and 9 percent, respectively, and the Hang Seng Index falling more than 1 percent.
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