Asian stock markets rebounded on Monday after a technology-led sell-off triggered by the Democratic Party’s sweeping victory in the US midterm elections, with major indexes in Japan, South Korea, Taiwan and Hong Kong posting gains.
The recovery followed a rise on Wall Street on Friday. Tokyo’s Nikkei 225 was up 3.45 per cent as of 04:00 GMT, while Taiwan’s Taiex gained 5.72 per cent.
South Korea’s Kospi rose 1.68 per cent and Hong Kong’s Hang Seng Index was 0.19 per cent higher.
Asian stock markets recover after technology sell-off
US stock futures also pointed upwards, with contracts for the S&P 500 gaining 0.60 per cent and those for the technology-heavy Nasdaq 100 up 0.59 per cent.
The futures had dipped earlier after Nvidia said it would investigate its chief executive, Jensen Huang, over a romantic relationship with a woman accused of being a Chinese spy.
Nvidia’s board said it retained confidence in Mr Huang and had no reason to believe that national security or company secrets had been compromised. It said the independent inquiry would examine “all available information”.
The board said Mr Huang supported the investigation and would co-operate fully. “The Board prioritizes U.S. national and economic security, which is paramount to the interests of NVIDIA and its shareholders,” the company said.
The broader sell-off followed the US midterm results, which prompted a $2.5 trillion fall in Wall Street stocks on Thursday. Investors were concerned that legislatures controlled by Democrats could slow the rollout of data centres needed to power artificial intelligence.
The technology rout spread to Asian markets on Friday, when the Nikkei 225 and Kospi plunged by about 6 per cent and 9 per cent respectively, while the Hang Seng fell by more than 1 per cent.
