Asia ex-Japan index rises 0.8% as volatile week begins and Nvidia board launches probe
Key Facts
The broad MSCI Asia-Pacific ex-Japan index rose 0.8% on Monday morning, November 9, after losing 4.6% in the week ended November 6, rebounding after a broad selloff. The MSCI Asia-Pacific index gained 0.7% at the open, while Japan’s Nikkei rose 1.9%, according to data reported by Reuters and The Business Times. Gains came as investors weighed the implications of Nvidia’s board announcing an investigation into reports that its chief executive, Jensen Huang, had been targeted in a foreign intelligence effort. Nasdaq 100 futures fell by as much as 1% after the announcement, according to The Business Times. The session’s moves showed a divergence between a recovery in regional shares and pressure in U.S. futures linked to technology companies.
In Taiwan, the Taiex rose 3.1% on Monday morning after falling more than 4% in the previous Friday’s session, according to a Dow Jones report published by MarketScreener. Monday’s reading followed a week in which Taiwanese shares fell 12.19%, according to Taiwan’s Ministry of Finance, in one of the steepest selloffs cited in the ministry’s statement. The ministry said Taiwanese shares’ performance over the week trailed the U.S. semiconductor index, which fell 15.7% over the same period. In October, foreign investors recorded net sales of 9,943.16 billion Taiwan dollars, the highest monthly level on record, according to the ministry. Net selling continued in November, reaching 5,244 billion Taiwan dollars through November 6, putting Monday’s rise in the context of a week of pressure and large outflows.
In the U.S., a gauge of semiconductor stocks jumped 4.2% on Friday, November 6, as speculation eased about a potential tightening of artificial intelligence industry regulation by Democrats, according to The Business Times. That came amid gains in U.S. shares ahead of Asian markets opening on Monday. However, Nvidia’s board announcement that it would open an independent investigation brought a separate concern about corporate governance and trust back to the fore. The board said the investigation would examine available information about reports that Huang had been the target of a foreign intelligence effort. The board added that there was “no reason to believe” national security or Nvidia’s secrets had been compromised, while stressing that the review would address the available information.
The Associated Press reported that Huang would remain chief executive during the investigation and would support and cooperate with the review. The process differs from a regulatory or legal investigation targeting the company; available reports describe an internal review launched by the board following claims about a foreign intelligence effort. According to the information in the company’s statement, the board did not announce a breach of national security or Nvidia’s secrets. The investigation comes as markets track chipmakers’ performance following weekly losses in Taiwan and the U.S. semiconductor index. Nvidia shares closed at $186.64 in the November 6 session, according to L7 data.
In response to the recent decline, Taiwan approved short-selling restrictions that take effect on November 9, while the Ministry of Finance said it was ready to use its 500 billion Taiwan dollar stock stabilization fund. The ministry also said the Financial Stability Fund had authorized its executive secretary to use the funds, if needed, to carry out the market stabilization mandate. It said the selloff prompted it to act after shares fell 12.19% in the week ended November 6. The measures underscore the pressure facing the Taiwanese market before the Taiex rose on Monday morning. A market analyst quoted by Reuters said markets were “still far from overcoming the risks,” citing regulatory risks and weak earnings momentum.
Investors are turning their attention to U.S. inflation data due Tuesday, November 10, for clues on the path of interest rates, according to The Business Times. Markets are also watching technology company earnings reports due during the week, including CoreWeave, Applied Materials and Cisco Systems, which Reuters said would test the profitability of artificial intelligence ambitions amid the cost of expansion. Nvidia scheduled its fiscal 2027 third-quarter results call for November 17. The company is set to hold the call at 2 p.m. Pacific time, or 5 p.m. Eastern time, to discuss its financial results. These dates put inflation data and the company’s results among the near-term catalysts markets are watching after Monday’s rebound and the investigation announced by Nvidia’s board.