Dateline: Tokyo/Seoul — November 10, 2025
Asian equities kicked off the week higher, led by a broad rebound in technology shares that powered gains in Japan and South Korea. The positive tone followed signs of progress in Washington toward ending a record U.S. government shutdown, a development that lifted global risk appetite and U.S. equity futures. Meanwhile, Chinese markets trailed despite fresh data showing inflation turning positive.
Key market moves
- Japan: The Nikkei 225 rose about 1.3% to 50,911.76, with AI-linked chip names leading the advance. Tokyo Electron climbed around 4.3%, while other semiconductor-related stocks firmed.
- South Korea: The Kospi led regional gains, up roughly 3.0% to 4,073.24. SK Hynix rallied about 4.5% and Samsung Electronics added close to 2.8%, extending their outperformance as investors rotated back into chipmakers.
- Hong Kong & Mainland China: The Hang Seng rose about 1.6% and the Shanghai Composite added 0.5%, but mainland shares still lagged regional peers.
- Australia & Southeast Asia: Australia’s S&P/ASX 200 gained about 0.8%, with ANZ Group up roughly 1.8% after announcing further cost cuts. Singapore underperformed, with its benchmark index slipping around 0.8%.
What’s powering the rebound
1) Progress toward ending the U.S. shutdown:
Global markets drew support from a U.S. Senate procedural vote advancing a funding package that would temporarily reopen the government and extend financing into early 2026, with several full‑year appropriations attached. While not yet law, the step marked material progress and helped buoy risk assets worldwide. Analysts noted the shutdown—now stretching to about 40 days—has already disrupted economic reporting and weighed on sentiment, but a credible path to resolution lifted futures and global equities. The bill still needs House approval.
2) Tech sentiment stabilizes after last week’s AI jitters:
Stocks most exposed to the AI build‑out rebounded after last week’s heavy selloff across global tech. The earlier downdraft had raised questions about stretched valuations and whether the AI trade had overheated. Monday’s recovery suggests investors are refocusing on secular demand for chips and equipment that underpin AI infrastructure.
3) Fresh tailwind from Nvidia’s Blackwell pipeline:
Over the weekend, Nvidia CEO Jensen Huang said the company is seeing “very strong” demand for its next‑generation Blackwell AI chips, reinforcing the view that the semiconductor upcycle remains intact. Those remarks helped sentiment in chip supply chains across Asia, including Korea’s memory giants and Japan’s chip‑equipment leaders. Reuters
Japan and Korea: AI supply chain leads the way
The day’s leadership in Tokyo and Seoul came from companies central to semiconductor manufacturing and the AI ecosystem. In Seoul, SK Hynix and Samsung Electronics—both significant suppliers to AI data‑center customers—paced the rally. In Tokyo, equipment makers such as Tokyo Electron and Advantest advanced strongly, benefiting from expectations that AI‑related capital expenditure will remain resilient. Notably, Advantest and Tokyo Electron were among the day’s top movers, up roughly 3.8% and 4.7% respectively.
Investors also bid up TSMC in early trade, reflecting optimism around continued wafer demand linked to Blackwell. While Taiwan’s broader market was mixed, the incremental strength in the region’s largest foundry added to the constructive tone around AI hardware suppliers.
China: Inflation turns positive, but equities still trail
China’s October CPI rose 0.2% year‑on‑year, returning to positive territory after two months of declines, while PPI deflation eased. Even so, domestic demand remains uneven and equities lagged the region’s top performers. Monday’s modest gains in Shanghai and Hong Kong contrasted with stronger rallies in Tokyo and Seoul, underscoring lingering caution about China’s growth outlook despite the inflation uptick.
How Washington’s impasse is shaping the tape
The prospect of a near‑term end to the U.S. government shutdown lifted U.S. futures and bolstered risk appetite in Asia’s morning session. But market watchers warned that even with progress in the Senate, damage from the prolonged shutdown—including delayed economic data and knock‑on effects across sectors—may linger. The compromise bill must still clear the House before reaching the President’s desk. Until a final agreement is signed, traders remain sensitive to headlines from Capitol Hill.
The bigger picture: From valuation scare to earnings‑driven leadership
Last week’s downdraft reminded investors of the risks attached to highly concentrated market leadership. AI beneficiaries have carried outsized index weights and, when sentiment turns, can drag entire benchmarks lower. Monday’s bounce suggests a reset rather than a reversal: where earnings and multi‑year demand visibility (data‑center AI, high‑bandwidth memory, advanced packaging, and chip‑equipment upgrades) remain intact, buyers are stepping back in. That aligns with recent commentary that the global equity complex is increasingly synchronized with U.S. megacap tech trends—both on the way up and down.
What professional investors are watching next
- Shutdown endgame: A confirmed passage of the funding bill would likely reduce policy uncertainty and unlock a backlog of delayed U.S. macro releases, offering clearer signposts for rates and growth. Until then, liquidity and positioning could drive outsized moves on headlines.
- Chip demand signals: Follow‑through on Nvidia’s Blackwell orders and any updates from key suppliers (memory makers, foundries, and equipment vendors) will be crucial for gauging the durability of the AI hardware cycle.
- China’s data pulse: The return of CPI to positive territory is welcome, but investors will watch whether November and December data confirm a trend improvement or a one‑off bounce, especially against a still‑soft property market and uneven consumer spending.
Bottom line
Tech is back in the driver’s seat—at least for now. The combination of improving policy optics in the U.S., stabilization after last week’s valuation scare, and fresh confirmation of AI‑chip demand pushed Japan’s Nikkei and Korea’s Kospi decisively higher. China participated but underperformed, as investors waited for more evidence that green shoots in inflation will translate into sustained growth. How quickly Washington delivers a final shutdown fix, and whether AI capex continues to accelerate, will determine if today’s rally has legs into the rest of November.
Sources (selected):
- ABC/AP market wrap with Monday’s index levels for Nikkei, Kospi, Hang Seng and Shanghai; context on Senate steps to end the U.S. shutdown.
- Reuters global market update on progress toward ending the shutdown and the broader risk rally.
- n‑tv intraday brief on Asia session leadership in Tokyo and Seoul; notable movers (Advantest, Tokyo Electron, Samsung, SK Hynix).
- IT‑Boltwise Asia session recap (Japan/Korea strength, China lag; ASX and Singapore moves; TSMC) for color on regional breadth.
- Reuters report on Nvidia CEO Jensen Huang citing “very strong” demand for Blackwell chips. Reuters
- Reuters China CPI/PPI update (Oct. data).
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