Asian Stocks Recover as Nvidia Probe Keeps AI Sentiment Fragile

Markets steadied after fears that a Democrat-led U.S. Congress could slow the expansion of AI data centers helped drive last week’s losses. Yorkville Ives analysts said investors had become too pessimistic about the AI buildout, arguing that investment would continue in some form. The U.S.-China technology rivalry could also sustain spending on AI infrastructure, they said.

President Trump wrote on Truth Social on Sunday: “Remember, China will take any Data Center that we don't want, and pay lots of money for it.” But Nvidia’s investigation into Huang could add fresh uncertainty. Yorkville Ives analysts said it could prompt multiple congressional inquiries and weigh on the stock, with Huang’s continued tenure as CEO a central question for investors.

After last week’s sharp losses, authorities in South Korea and Taiwan intervened to stem declines in their equity markets. The Kospi recently gained 0.4%, with SK Hynix up 0.3% and Samsung Electronics up 0.4%. Taiwan’s Taiex rose 3.1% after falling more than 4% Friday. Japan’s Nikkei Stock Average advanced 1.3%, while Hong Kong’s Hang Seng Index added 1.0%. Singapore and Malaysia markets were closed Monday for a holiday.

Oil prices fell after Trump told CNN that renewed strikes were “highly unlikely” if negotiations over Tehran’s nuclear program and the reopening of the Strait of Hormuz made progress. Iranian Foreign Minister Abbas Araghchi said talks with the U.S. had made no progress and that Tehran was waiting to see whether Washington’s position changes after the midterms.

Capital Economics economist Hamad Hussain said oil supply and demand had not materially changed over the past week, suggesting the price decline largely reflected a narrowing risk premium. Front-month West Texas Intermediate futures fell 0.4% to $90.42 a barrel, and front-month Brent futures dropped 0.9% to $97.49 a barrel.