Asia tech stocks claw back some losses after midterms rout
Tech firms on Asian stock markets clawed back some of last week's losses on Monday fuelled by AI regulation worries, though gains were tempered by news of a probe into Nvidia boss Jensen Huang .I...
Asian tech stocks experienced a brief recovery on Monday after suffering losses the previous week, as investors focused on AI regulation concerns and a probe into Nvidia CEO Jensen Huang. The Nikkei 225 in Tokyo closed up 2.3% to 58,775.50 points, while the Seoul Kospi fell 0.8% to 5,018.85 points, and the Hong Kong Hang Seng Index dropped 0.1% to 24,448.95 points. Shanghai's Composite Index ended up 0.3% to 3,660.79 points.
The recent US midterms saw Democrats gain control of both chambers of Congress, leading to concerns about potential restrictions on tech firms' expansion and job cuts. This uncertainty, combined with Wall Street's recent stability, contributed to the modest gains in Asian markets. However, the fear of AI regulation and the impact on capital expenditures and free cash flow remain significant challenges for the sector.
In a separate development, Nvidia's board launched an investigation into whether Huang had been a target of a foreign espionage plot, involving a Chinese executive named Alice Huang. The investigation may lead to increased congressional scrutiny and create an overhang on Nvidia's stock, affecting the company's global strategy and chip sales to China. Investors are also watching for fresh US inflation data, which could influence the Federal Reserve's decision on interest rate hikes in December.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
