Market Snapshot
Taiwan’s Taiex led gains with a 4.9% jump, thanks to a rebound in computer chipmaker TSMC, which rose 4.7%. In Japan, the Nikkei 225 gained 2.3% to 58,775.50. In South Korea, Samsung Electronics and SK Hynix finished up 0.6% and 0.4%. This is the first session since the midterm rout where the global AI complex moved higher as a bloc.
Futures for Wall Street’s S&P 500 and the Nasdaq 100 were higher in early trading. The AI trade is stabilising, not recovering. There is a difference worth keeping front of mind heading into Tuesday’s open.
Stocks in Focus
- TSMC (TSM): Taiwan’s Taiex led regional gains, rising 4.9%, supported by a 4.7% jump in shares of TSMC. TSMC’s monthly sales update, due Tuesday at 1:30 p.m. Taipei time, will be in focus. A strong October sales number could add a second catalyst for TSM’s U.S. ADR.
- Samsung Electronics & SK Hynix: Samsung Electronics and SK Hynix ended up 0.6% and 0.4% in Seoul after giving up earlier gains. Investors had worried that a new Congress could impose tighter rules on AI data-center construction, potentially slowing the buildout and weakening future demand for the memory chips that Samsung and SK Hynix supply. Monday’s gains suggest those fears are being repriced at the margin, not erased.
- Tokyo Electron & Advantest: Chip equipment maker Tokyo Electron rose, and Advantest was also higher, as equipment names tended to move with conviction as investors leaned back into semis.
- Nvidia (NVDA): Nvidia’s board announced Sunday it is launching an independent investigation following reports that CEO Jensen Huang was targeted by a foreign intelligence effort. Separately, the chairs of three U.S. House committees requested that Huang appear for a closed-door briefing on November 18. Asia bought chip stocks despite this overhang, not because it cleared.
Sector Watch
Regional tech stocks benefited from gains Friday in the U.S., where AI stocks got some relief from their sell-off on worries that Democratic victories in the midterm elections could slow construction of AI data centers, particularly in Texas. The rebound followed steep losses across Asian markets last week, driven by concerns that Democratic victories in the U.S. midterm elections could lead to tighter regulation and delays to the expansion of AI data centres.
These are relatively modest gains for companies whose share prices have yo-yoed as investors dumped and then snapped up AI-related shares over the past few weeks. Capital rotating back into semiconductors has legs only if Tuesday’s inflation reading does not revive rate-hike expectations aggressively.
Rate sensitivity is not the only earnings-week variable pressing on semiconductor multiples. Qualcomm’s post-earnings selloff despite strong revenue shows how guidance disappointments can reset an entire sector’s recovery attempt.
Catalyst Calendar
- CPI, Tuesday 8:30 a.m. ET: The next CPI is Tuesday, November 10, 2026 at 8:30 AM ET, covering October 2026. Economists expect inflation to remain elevated, with some forecasts calling for headline inflation to tick up from September. This is the last CPI report before the December Fed meeting.
- TSMC October Sales, Tuesday 1:30 p.m. Taipei: A revenue miss here could quickly test the durability of Monday’s Taiex rally.
- Nvidia Congressional Briefing Request: House committee chairs requested that Huang appear for a closed-door briefing on November 18. The uncertainty sits as a low-grade drag on NVDA through mid-month.
Risk Radar
- CPI upside surprise: September’s headline reading was 3.7%. A hot October number would pressure tech multiples just as they are attempting to recover.
- Nvidia leadership risk: Political escalation, not the underlying allegations, is the variable to track.
- Shallow breadth: A one-day bounce led by a single name is not a trend change.
The Cheat Sheet
- Top Theme: Asia dip-bought the AI wreck, with TSMC leading the snapback, but the conviction behind Monday’s move will be tested within 24 hours.
- Stock to Watch: TSM. It drove the Taiex and reports October sales Tuesday. Two catalysts in one day.
- Sector to Watch: Semiconductors. Equipment names moved with force, suggesting the market is betting the capex cycle survives Democrat control of Congress.
- Biggest Risk: A hot CPI month-over-month reading Tuesday morning that resets Fed expectations and pulls the floor out from under a recovery built on relief, not fundamentals.
- Biggest Opportunity: TSMC into the monthly sales release. Sentiment reset plus a potential revenue beat is a rare combination of catalyst and reduced positioning.
- One Thing to Remember: Asia bought through the Nvidia scandal, not around it. The AI supply chain is behaving as though the CEO controversy is a governance problem, not a demand problem. That distinction determines how long this bounce runs.
