SEOUL, SOUTH KOREA — November 9, 2025 — Asian equities surged on Monday as investors returned to risk assets following last week’s AI-driven selloff. South Korea’s Kospi Index led the region’s recovery with a 3.02% gain, driven by sharp advances in banking and insurance stocks.
Asian Markets Rebound After Tech-Fueled Losses
Across the Asia-Pacific region, major indices posted broad-based gains. Investors took comfort in signs that last week’s correction in artificial intelligence and tech shares may have bottomed out. Renewed optimism followed the release of China’s October inflation data, which came in above expectations, helping to stabilize regional sentiment.
According to Reuters, China’s consumer inflation rose 0.2% year-on-year, while wholesale prices declined 2.1%, a milder drop than expected. The data eased fears of deflation and signaled improving demand in the world’s second-largest economy.
South Korea’s Kospi Leads the Regional Rally
The Kospi Index closed at 4,073.24, climbing over 119 points and outperforming regional peers. Gains were powered by heavyweight stocks such as Samsung Electronics, up 2.76%, and SK Hynix, up 4.48%, reflecting renewed appetite for tech and semiconductor plays.
Financial firms also saw strong momentum, with SK Inc rising 9.29% and GS Holdings jumping 11.79% amid expectations of improving corporate earnings. Analysts noted that institutional buying returned in force after weeks of cautious trading.
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Central Bank Signals Potential Policy Adjustment
Minutes from the Bank of Japan’s October meeting revealed growing inclination toward a near-term interest rate hike, suggesting confidence in the country’s inflation outlook. Officials indicated that the “conditions for normalization” of policy rates were nearly met, though further examination of core inflation trends remains underway.
The Nikkei 225 advanced 1.26% to close at 50,911.76, while the Topix Index added 0.56% to reach 3,317.42. Yields on 10-year Japanese government bonds climbed to 1.7%, the highest since October.
Broad Gains Across Major Asia-Pacific Indices
Elsewhere in Asia, the Hang Seng Index in Hong Kong rose 1.54%, and the Shanghai Composite gained 0.53%, extending the region-wide rally. In Australia, the S&P/ASX 200 climbed 0.75%, while India’s Nifty 50 and Sensex indices rose 0.54% and 0.52%, respectively.
The overall uptick reflected improving sentiment following reports that the U.S. government shutdown was nearing resolution — a factor that had weighed heavily on markets in recent weeks.
Global Markets Respond to U.S. Political Developments
Investor optimism was further buoyed by progress in Washington, where a bipartisan deal aimed at ending the 40-day government shutdown advanced through the Senate. Analysts expect the resolution to stabilize global market liquidity and improve near-term confidence.
On Wall Street, the Dow Jones Industrial Average and S&P 500 edged higher on Friday, while the Nasdaq Composite remained under mild pressure due to continued tech volatility.
Economic Outlook and Market Forecasts
Economic analysts believe that Asian markets are poised for gradual recovery, supported by strong corporate earnings, moderating inflation, and stabilizing global trade conditions. However, they caution that volatility could persist as investors reassess AI sector valuations and U.S. policy risks.
“The Kospi’s rally reflects renewed investor confidence, but caution remains warranted,” said Lee Joon-ho, senior economist at Korea Capital Markets Institute. “Markets are reacting to near-term optimism, though external headwinds could still influence trajectory in the weeks ahead.”
