Asian shares and U.S. stock futures rose Monday as investors bought back into technology stocks after last week’s AI-linked sell-off. The rebound followed sharp losses in major Asian indexes and eased some immediate pressure, though the reporting does not establish that market volatility has ended.

Asian indexes recover after a volatile week

Reuters reported that MSCI’s broad Asia-Pacific index excluding Japan climbed 2% in Monday trading, while Japan’s Nikkei added 3.5% and South Korean shares rose 1.8%. Taiwan’s benchmark gained more than 6% in Reuters’ account. The Associated Press also reported gains across Asian and European markets and higher U.S. futures, with technology shares benefiting from Friday’s recovery on Wall Street.

The move followed a punishing session late last week: AP reported that South Korea’s Kospi had fallen 7.4% and Japan’s Nikkei 225 dropped 5.7% on Friday as AI-related selling spread through regional markets. Monday’s advance therefore marked a sharp change in direction, not evidence that the underlying concerns had been resolved.

Why investors remain cautious

Reuters identified worries about the profitability of AI investments, the cost of data-center expansion and the possibility of tighter U.S. regulation as factors weighing on technology shares. The report also noted that upcoming technology-company earnings could test whether expected returns justify the scale of spending.

Markets can move quickly when investors reassess crowded trades. The rebound came after a steep decline, and both reports described early trading rather than a settled outlook. For background, see The Globuzz’s earlier coverage of the Asian sell-off.

These market developments are reported as news and are not investment advice.

Sources

Associated Press: World markets bounce back after AI stocks recover
Reuters: Asian stocks bounce as AI and Middle East jitters recede