Asian Stocks Mixed as Japan and South Korea Lead Tech Rebound, China Struggles Despite Inflation Uptick

Asian stock markets showed a mixed performance on Monday, with Japan and South Korea leading regional gains amid a rebound in technology shares, while China lagged despite signs of improving inflation. The positive sentiment was partly driven by a rally in U.S. stock futures, as reports indicated that a prolonged government shutdown may soon end. S&P 500 futures surged 0.6% in Asian trading, boosting investor confidence.

Japan’s Nikkei 225 rose 1.2%, and South Korea’s KOSPI jumped 2.8%, supported by strong rebounds in major tech stocks. Hong Kong’s Hang Seng also added 0.3%. Investors engaged in bargain buying after last week’s heavy tech-driven selloff, which stemmed from growing doubts over artificial intelligence-driven valuations. Key chipmakers led the rally, with SK Hynix gaining 5%, Samsung Electronics up 2.3%, Advantest climbing 3.9%, and Tokyo Electron advancing 4.3%. Taiwan Semiconductor Manufacturing Co. (TSMC) rose 1% in early trading. The rally was further fueled by NVIDIA CEO Jensen Huang’s comments highlighting strong demand for the firm’s new Blackwell AI chips.

Japanese e-commerce firm Mercari Inc. was a standout performer, soaring over 10% after reporting robust quarterly results, becoming the top gainer on the Nikkei 225.

In contrast, Chinese markets underperformed, with the Shanghai Shenzhen CSI 300 and Shanghai Composite Index trading flat to lower. October data showed China’s consumer price index rising for the first time since June, driven by Golden Week spending, while producer prices continued to decline for the 37th straight month. Despite this mild improvement, China remains mired in deflationary pressure amid weak consumer demand.

Elsewhere, Singapore’s Straits Times Index slipped 0.8%, Australia’s ASX 200 gained 0.7%—supported by ANZ Group’s 1.8% rise—and India’s Nifty 50 futures climbed 0.4%.