Asian stocks mixed as tech sector struggles to rebound from selloff

Asian markets experienced a mixed day on Monday (Nov 2) as investors grappled with the aftermath of a steep sell-off in tech stocks, fueled by disappointing earnings reports from industry giants. The decline was exacerbated by Wall Street's continued investment in data centers and chips, a move that raised concerns about the adequacy of the funds poured into the sector.

The tech-heavy Nasdaq closed nearly three percent lower, with Japanese chipmaker Kioxia suffering a more than 15 percent drop following the release of a cautious outlook that fell short of market expectations. Samsung Electronics also saw a decline of over one percent, while SK hynix managed to gain almost one percent despite broader industry challenges.

Despite these setbacks, the broader market showed signs of resilience, with Tokyo, Sydney, Singapore, and Taipei all experiencing declines, while Seoul, Hong Kong, and Shanghai rose. The drop in oil prices, attributed to hopes for a negotiated resolution to the Iran crisis, provided some relief to traders, with the US dollar sinking more than two percent.

Meanwhile, US President Donald Trump's campaign trail comments hinted at the potential resumption of military action against Iran, while Vice-President JD Vance sent a letter to Iranian national security chief Mohsen Rezaei regarding possible new negotiations. These developments added to the uncertainty surrounding the geopolitical landscape, which continues to impact investor sentiment.