Taiwan’s Taiex Leads Asian Stocks Higher Following AI Sell-Off

• Gains prevail across Asian stock markets on Monday.
• A 5.30% daily advance puts Taiwan's benchmark at the head of the gains.
• Equities recover from a technology sell-off sparked by the Democrats’ sweeping US midterm election victory.

Gains across most Asian equity markets on Monday mark a return to uneasy calm following a turbulent week. Concerns over Artificial Intelligence (AI) had sent the region’s technology-heavy markets to some of their sharpest losses in years.

A rise of around 5.30% took Taiwan's benchmark TAIEX to 41,800, as the index recovered from last week's steepest weekly decline in two decades. Following Democratic wins in the US midterm elections, concerns over AI profitability and demand for infrastructure had fuelled the sell-off.

Analysts also pointed to a potential source of volatility at industry bellwether Nvidia. The company is conducting its own investigation into whether CEO Jensen Huang had been targeted by foreign espionage.

Japan’s benchmark Nikkei 225 advanced 2.90% to 59,090. Minutes of the BoJ's September meeting, published last week, showed that most policymakers considered additional interest rate rises appropriate as underlying inflation drew closer to the central bank's 2% target.

In China, the main stock market index, the SHANGHAI, added 0.35% to reach 3,660, while a 0.13% rise took the Hong Kong Stock Exchange to 24,520. By contrast, the Shenzhen Stock Index slipped 0.14% to 11,160.