Asian Stocks Steady on Monday as Nikkei Rebounds 2.5% After Tech Rout
Asian stocks steadied on Monday, November 9, 2026, after a wild week in which doubts about computer chip demand sent tech heavy markets in Asia into some of their steepest falls in years. Japan’s Nikkei index rose 2.5 percent, and a broad index of Asia Pacific shares outside Japan rose 0.8 percent, after sliding 4.6 percent last week. The calm is only partial. Analysts warned markets are far from out of the woods, with US inflation data due on Tuesday and big tech earnings still to come this week.
What happened
Last week, worries about the profitability of artificial intelligence and the huge cost of building data centres turned into a rout. The selling followed wins by Democrats in the US midterm elections, which raised fears of tougher regulation of AI and data centres. Taiwan’s benchmark rose about 2.5 percent on Monday after its heaviest weekly drop in two decades. Korean shares made small gains, and US stock futures were a touch higher.
Japan’s Nikkei had fallen 6 percent on Friday, a drop that pushed the index into bear market territory, more than 20 percent below its record high. On Monday it recovered part of that fall, rising 2 percent to 58,584.11 in early trade. On Wall Street, equities rallied on Friday to end the chaotic week, which helped calm nerves in Asia.
Oil also eased. Brent crude fell to 97.49 dollars per barrel after US President Donald Trump said on Sunday he was highly unlikely to order fresh attacks on Iran as long as talks to end the conflict progress. The dollar stayed firm. The dollar index last traded at 102.2, after notching its biggest single day gain in five months on Friday. Bitcoin fell by more than 2 percent to 73,708 dollars, and ether fell about 5 percent to 2,223 dollars, touching the lowest levels in over two months as investors worried a Democratic controlled US Congress will toughen regulation of cryptocurrencies.
The dollar’s strength followed a strong US jobs report on Friday. Employers added 165,000 jobs last month, more than twice what economists expected. That strengthened the case for the Federal Reserve to raise interest rates in December. Market expectations for an increase of at least 25 basis points at the December meeting moved up to nearly 80 percent, according to the CME FedWatch Tool. New York Fed President John Williams said US economic growth has stayed remarkably resilient, but inflation is too high and it is essential to bring it back to 2 percent.
Why it matters for beginners
A week like this one shows how fast market mood can change. One week, investors worry that AI spending will never pay off. The next morning, the same shares bounce back. Neither the fall nor the bounce tells you what will happen next. A single day of gains does not mean the worry is over, and a single week of falls does not mean a market is broken.
This is also a good example of how one story can move many markets at once. The midterm election result in the United States moved shares in Japan, Taiwan, and South Korea, because investors everywhere were asking the same question about AI regulation and data centre spending. Oil moved on a separate story, about talks with Iran. The dollar moved on jobs data and interest rate bets. Different markets react to different news, even on the same day.
For a beginner, the lesson is simple. Big swings are normal in investing, and they are hardest to sit through when the news is loud. That is why it helps to know what risk in investing really means before you put money in, and to keep money you need soon out of volatile investments. Our guide on what risk in investing means in simple terms explains the main types of risk and a calm way to manage them.
What to watch next
US consumer price data for October is due on Tuesday, November 10. It is the last big inflation reading before the Federal Reserve meets on December 8 and 9. A hotter than expected reading would strengthen the case for a December rate rise. Earnings reports due this week from tech companies including CoreWeave, Applied Materials, and Cisco Systems will test whether the huge spending on AI can pay off.
Investors will also watch a company led investigation by Nvidia into its chief executive Jensen Huang’s relationship with an alleged Chinese spy, which could add volatility to chip shares. And on Tuesday, the minutes from the Riksbank’s November 4 meeting will show how Sweden’s central bank weighed its decision to raise rates to 2 percent.
Frequently asked questions
What is a bear market?
A bear market is usually defined as a fall of 20 percent or more from a recent peak. Japan’s Nikkei entered bear market territory after Friday’s 6 percent slump left it more than 20 percent below its record high. The label describes how far prices have fallen, not what will happen next.
Why did Asian tech shares fall so sharply last week?
Investors began to doubt whether the huge spending on AI chips and data centres will earn enough money to justify it. The US midterm results added a second worry, that a Democratic controlled Congress could bring tougher regulation of AI and data centres. Together, those doubts turned into heavy selling across Asia’s tech heavy markets.
Does Monday’s rebound mean the sell off is over?
Not necessarily. Analysts quoted by Reuters said markets are far from being out of the woods, with the momentum still skewed to the downside after an underwhelming earnings season. Tuesday’s US inflation data and this week’s tech earnings will give investors fresh reasons to buy or sell.
Why did the dollar rise while stocks were falling?
Strong jobs data made traders more confident the Federal Reserve will raise interest rates in December. Higher expected rates tend to support the dollar, because they can attract money into dollar assets. The dollar index notched its biggest single day gain in five months after the jobs report.
Sources
Reuters, Asian stocks steady as AI, Mideast jitters recede; dollar firm on Fed bets, November 9, 2026: https://985theriver.com/2026/11/08/asian-stocks-steady-as-ai-mideast-jitters-recede-dollar-firm-on-fed-bets/
Reuters, Japan’s Nikkei rebounds 2% after tech-led rout, November 9, 2026: https://www.tradingview.com/news/reuters.com,2026:newsml_L6N46Q025:0-japan-s-nikkei-rebounds-2-after-tech-led-rout/
This article is for general information and education only. It is not legal or financial advice.
