Asian stocks extended their rebound on Tuesday, 10 November, as chip and artificial intelligence shares climbed again, recovering much of the ground lost in Friday's technology-led sell-off.

Japan's Nikkei 225 was up about 2.7% near 60,400 in early afternoon trade, while the broader Topix gained about 2.2%, according to market reports. In Seoul, the Kospi jumped more than 4% to around 5,240, with the technology-heavy Kosdaq up nearly 4%.

SoftBank leads Tokyo higher

SoftBank Group led the Tokyo rally, surging more than 14% after its latest earnings beat expectations. The shares traded at 3,877 yen in Tokyo on Tuesday, up 477 yen, or 14%, on the previous close of 3,400 yen. Net sales for its fiscal second quarter reached 1.98 trillion yen, above the 1.87 trillion yen analysts had expected, while net income came in at 214.48 billion yen, also ahead of forecasts.

Chip equipment makers Advantest and Tokyo Electron gained around 5% to 6%, and memory maker Kioxia jumped more than 7%. In Seoul, Samsung Electronics rose about 5% and SK Hynix around 6%.

Rebound follows Wall Street recovery

The gains followed a strong session on Wall Street on Monday, when the Dow Jones Industrial Average rose 1,104 points, or 2.15%, the S&P 500 gained 2.35% and the Nasdaq Composite climbed 2.74%. Falling oil prices helped sentiment after US President Donald Trump played down the chance of fresh strikes on Iran.

The Nikkei had fallen nearly 6% on Friday on concerns that Democratic gains in the US midterm elections could slow artificial intelligence investment. The index opened 596 points, or 1.02%, higher at 59,372 on Tuesday and was at one stage 1,725 points higher before noon.

Gains more modest elsewhere

Elsewhere in the region, gains were more modest. Hong Kong's Hang Seng Index opened 172 points, or 0.7%, higher at 24,621, while the Shanghai Composite opened up 21 points, or 0.58%, at 3,682. Taiwan's Taiex rose 2.6%.

Not every stock joined the rally. In Tokyo, Toyota was the biggest drag on the Topix. The rebound also came despite a 4.2% fall in Nvidia overnight amid the controversy surrounding its chief executive, Jensen Huang.

Friday's sell-off had been sharp. The Nikkei fell nearly 6% in a single session, while South Korea's Kospi dropped 6% and Taiwan's Taiex fell sharply enough for Taiwan's authorities to tighten short-selling curbs and authorise a stabilisation fund. Two sessions of gains have now recovered most, though not all, of that ground.

The next test for technology sentiment is the US consumer price index, due later on Tuesday.