Asian equities opened the week on uneven footing Monday, with Japan and South Korea leading gains on a rebound in semiconductor and AI-adjacent names, while Chinese benchmarks underperformed even after a marginally better inflation print. Regional sentiment also drew support from U.S. equity futures—S&P 500 contracts rose about 0.6%—on reports the prolonged U.S. government shutdown may soon end. Still, many markets are nursing heavy losses from last week’s tech-led rout amid doubts over AI-driven valuations.

Leaders: Japan and Korea bounce on chips

• Nikkei 225 +1.2% | TOPIX higher: Dip-buying rotated back into factory-automation and semiconductor capital equipment. Advantest gained ~3.9% and Tokyo Electron ~4.3%. Outside tech, Mercari surged >10% after robust quarterly results.
• KOSPI +2.8%: Chip heavyweights outperformed, with SK Hynix +5% and Samsung Electronics +2.3%, aided by bargain hunting and commentary from NVIDIA CEO Jensen Huang that demand for next-gen Blackwell AI chips remains “very strong.”
• Hang Seng +0.3%: Tech strength helped the broader index edge higher, though gains were modest versus Korea and Japan.

China: better CPI, weak follow-through

• CSI 300/Shanghai Composite: flat to slightly lower. Weekend data showed CPI rose more than expected in October—helped by Golden Week—marking the first uptick since June; PPI deflation eased slightly but logged a 37th straight month in negative territory.
• The mixed signal reinforced the narrative of persistent disinflationary pressure and fragile consumption once holiday effects fade, curbing risk appetite for A-shares despite the headline beats.

Elsewhere in the region

• Singapore STI −0.8% as financials and industrials lagged.
• Australia ASX 200 +0.7%, supported by banks; ANZ +1.8% as cost-cut pledges offset softer annual cash profit.
• India Nifty 50 futures +0.4%, pointing to a firmer open amid resilient domestic flows.

Big picture: a fragile respite

The rebound in North Asia’s tech complex looks tactical after last week’s de-rating on valuation worries. Any sustained recovery likely hinges on:

1. confirmation of a U.S. shutdown resolution and return of timely macro data;
2. earnings and capex guidance from AI bellwethers that can justify premium multiples; and
3. evidence of a durable demand turn in China beyond holiday-distorted prints.

For now, Asia’s tape is stabilizing—but leadership remains concentrated in semis, and breadth will need to improve to turn a bounce into a trend.