Global markets rise as AI stocks rebound

European markets opened strong, with Germany’s DAX climbing 0.6 per cent to 25,974.42, and the CAC 40 in Paris up 0.4 per cent to 8,168.36. The FTSE 100 in Britain also rose 0.4 per cent to 10,720.81.

U.S. stock futures indicated a positive start to the day, with the S&P 500 up 0.3 per cent and the Dow Jones Industrial Average climbing 0.6 per cent.

Asia experienced significant gains, led by Taiwan’s Taiex, which jumped 4.9 per cent, fueled by a 4.7 per cent surge in computer chipmaker TSMC. This rebound followed concerns that recent Democratic victories in U.S. elections could hinder the construction of AI data centers, particularly in Texas, prompting investor caution.

Tokyo’s Nikkei 225 index closed 2.3 per cent higher at 58,775.50. Chip equipment maker Tokyo Electron climbed 2.8 per cent, while Advantest rose 1.3 per cent. SoftBank Group’s shares, however, fell 4.2 per cent due to difficulties with a US$5.4 billion robotics deal with Switzerland’s ABB, which Chinese regulators have rejected.

In South Korea, the Kospi initially rose but then fell back 0.8 per cent to 5,018.85. Samsung Electronics Corp. gained 0.6 per cent and SK Hynix rose 0.4 per cent.

Hong Kong’s Hang Seng edged 0.1 per cent lower to 24,448.95, while the Shanghai Composite index added 0.3 per cent to 3,660.79. Australia’s S&P/ASX 200 edged 0.1 per cent higher to 9,029.70.

On Friday, the S&P 500 rose 0.3 per cent, trimming its weekly loss to 2.7 per cent. Nvidia, a key player in the AI sector, contributed significantly to the gain, with its stock climbing 2.8 per cent after previous losses. Nvidia is currently investigating reports that its CEO, Jensen Huang, was targeted by a foreign intelligence operation related to a business executive. China’s Foreign Ministry dismissed these allegations as a smear campaign.

Despite recent volatility, the S&P 500 remains only 5.7 per cent below its all-time high. A recent report indicated stronger-than-expected U.S. job growth, suggesting the economy is resilient despite inflation.

Brent crude oil slipped two per cent to $96.38 per barrel, while U.S. benchmark crude fell 1.5 per cent to $89.56 per barrel. The U.S. dollar weakened slightly against the Japanese yen and the euro.