Asia Stocks Rebound After Tech-Led Selloff; Australia Trade Data in Focus
HONG KONG, Nov 6 (Investing.com) – Asian stock markets experienced a broad rebound on Thursday, led by strong performances in Japan and China, as investor concerns over stretched technology stock valuations eased. The recovery followed a sharp selloff across global markets the previous day, sparked by a tech-led decline on Wall Street.
Major U.S. stock indices closed higher overnight, and futures tied to them showed minimal movement as of 04:07 GMT, indicating a stable market environment.
Asia Markets Recover from Sharp Losses
In Japan, the Nikkei 225 surged 1.5%, recovering from a 2.5% drop the previous day. The broader TOPIX index also saw a 1.4% increase, reflecting investor optimism despite recent market volatility.
UBS analysts noted that the Nikkei’s recent strong gains, especially over the past month, made some profit-taking a natural outcome. “We think some profit-taking is natural after a runup,” UBS analysts said in a note.
Meanwhile, China’s blue-chip Shanghai Shenzhen CSI 300 rallied by 1.4%, buoyed by strong buying activity in heavyweight tech and consumer stocks. The Hang Seng Index in Hong Kong also gained 1.6%, driven by a rebound in semiconductor and AI-related stocks. Notably, the Hang Seng TECH sub-index surged more than 2%.
Chinese chipmakers were further supported by a Reuters report that Beijing is planning to ban the use of foreign-made artificial intelligence chips in state-funded data centers, sparking renewed optimism among local tech companies.
South Korea’s KOSPI also added 1.3% after a sharp decline of as much as 6% on Wednesday. Analysts suggested the recent market correction was likely a temporary adjustment, with valuations aligning after a prolonged rally.
Global Factors and Trade Policy Uncertainty
Investors continued to monitor developments in Washington, where the U.S. Supreme Court began hearings over the legality of tariffs imposed by former President Donald Trump. The justices expressed concerns over the sweeping use of emergency powers to impose tariffs, a case that could have far-reaching implications for global trade policy.
The uncertainty surrounding global trade, especially the potential for changes in U.S. tariff policy, added an additional layer of caution to market sentiment.
Australia’s Strong Trade Data and Regional Bank Earnings
In other regional news, Australia’s trade surplus expanded sharply to A$3.94 billion in September, up from A$1.11 billion in the previous month. The increase was driven by a strong rebound in exports, particularly commodities, while imports saw a moderation.
The S&P/ASX 200 in Australia rose 0.3%, with investors digesting the country’s positive trade data and focusing on regional banks’ earnings. Singapore’s Straits Times Index also climbed 1.3% on Thursday.
Investor sentiment in Australia’s banking sector was mixed, with National Australia Bank (NAB) shares dropping nearly 4% after the lender posted a full-year net profit that was slightly lower than the previous year, but in line with analysts’ expectations.
Meanwhile, in Singapore, DBS Group (SGX:DBSM) saw a 3% increase in its stock price after reporting a record total income for the third quarter, supported by strong growth in wealth management and deposits. However, United Overseas Bank (SGX:UOBH) experienced a 3.5% decline in shares after its net profit slumped by 72%, largely due to higher credit provisions. The bank also forecast a lower net interest margin for 2026.
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Conclusion: A Day of Rebounds and Caution
Asian stock markets closed the week on a positive note, recovering from recent declines as concerns over technology stock valuations subsided. The strong performances in Japan, China, and Hong Kong helped lift sentiment across the region. Meanwhile, investors continue to keep a close eye on Australia’s trade data and earnings reports from regional banks, as these will play a significant role in shaping market sentiment in the days ahead.
