Asian stocks steady as AI, Mideast jitters recede; dollar firm on Fed bets

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8% after sliding 4.6% last week.

HONG KONG - Asian markets and US equity futures made a steady start on Nov 9, wobbling into positive territory after a wild week where doubts about demand for computer chips sent tech-heavy markets in Asia into some of their steepest falls in years.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8% after sliding 4.6% last week. Japan’s Nikkei index added 2.5% while South Korean shares made small gains.

Taiwan’s benchmark rose about 2.5% after notching its heaviest weekly drop for two decades last week, when fears about AI profitability and infrastructure demand turned into a rout following wins by Democrats at US midterm polls.

US stock futures, the S&P 500 e-minis, were a touch higher. On Nov 6, Wall Street equities rallied to end a chaotic week after heavy artificial intelligence (AI)-related selling, helping to calm some nerves.

Global stocks had already been on shaky ground in recent weeks with the AI trade crumbling in the face of rising interest rates, until the United States midterm results unleashed deeper worries about increased regulation of AI and data centres.

Earnings reports due this week from tech companies including CoreWeave, Applied Materials and Cisco Systems are set to put the profitability of AI ambitions to the test amid the massive costs of the build-out.

Meanwhile, a company-led investigation by industry bellwether Nvidia into its chief executive Jensen Huang’s relationship with an alleged Chinese spy could also draw some volatility.

“The markets are far from being out of the woods yet,” said Kyle Rodda, senior financial market analyst at Capital.com.

“Following last week’s midterm elections that have led to increased regulatory risk and an overall underwhelming earnings season that’s seen Magnificent Seven companies miss earnings expectations, the momentum remains skewed to the downside,” he added.

Elsewhere, Brent crude fell to US$97.49 per barrel after US President Donald Trump on Nov 8 said he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progress.

A blowout jobs report on Nov 6 showed US employers added 165,000 jobs in October, more than twice economists’ expectations and bolstering the case for the US Federal Reserve to raise interest rates in December. A US consumer price index reading due on Nov 10 could further cement expectations for a hike in December.