Tech Stocks Recover Some Losses After Midterm Election Selloff

Technology stocks recovered some of their recent losses on Monday as Asian markets followed Wall Street's late-week rebound, although investor sentiment remained cautious following last week's sharp selloff in artificial intelligence-related shares, Agence France-Presse (AFP) reported.

Asian technology stocks rebounded after last week's selloff, with Taiwan's Taiex rising nearly 5% as the government authorized market stabilization measures.

Japan's Nikkei 225 advanced more than 2%, supported by gains in technology-related companies, including Tokyo Electron, Advantest and Sony.

Taiwan's stock market also staged a strong recovery.

The benchmark Taiex surged 4.94%, supported by government assurances that the National Financial Stabilization Fund was authorized to intervene following the market's recent steep decline.

The fund's intervention authorization helped restore investor confidence after concerns about AI valuations and the outlook for semiconductor demand triggered heavy selling.

There were also gains in Shanghai, Bangkok and Jakarta. South Korea's market, meanwhile, experienced a more uneven session as chipmakers Samsung Electronics and SK Hynix gave up some of their earlier advances.

Hong Kong, Wellington, Manila and Mumbai were among the markets that recorded declines, while European markets initially opened lower before recovering.

Investors remained uncertain whether the latest gains represented a sustainable recovery or merely short-term buying after the selloff.

“Investors will be watching carefully this week to get a sense as to whether these gains are just short-covering, bargain hunting or the beginning of something more sustainable in nature,” said Sally Auld of National Australia Bank.