Nikkei rises 1.4%, Hang Seng down 0.9% on Nvidia CEO exit

Japan's strong showing reveals investor preference for markets with weak currencies and broad earnings support over AI-exposed markets. In Korea, early gains faded, with Samsung and SK Hynix subdued, hinting at caution on AI chip demand amid Nvidia's leadership uncertainty. Bitcoin's drop below $70,000, combined with firmer gold, points to a rotation from speculative assets, not a broad risk-off move. Oil's small decline despite Iran's latest claim suggests traders wait for confirmation before adding risk premium. For Asian tech next week, the main swing factors are Nvidia's succession and any further increase in US rate hike expectations.

Asian markets found some stability after a difficult week. Tokyo outperformed while Hong Kong underperformed, as the Nvidia leadership shock curbed enthusiasm for AI stocks.

Key market data:

• Nearly 1.4% was added to the Nikkei 225, taking it to around 61,650 at midday, while the Topix climbed close to 0.8%.
• The Kospi started about 2% up but gave back most of that gain to trade nearly flat, whereas the Kosdaq edged up close to 2%.
• Hong Kong's Hang Seng dropped nearly 0.9% to about 23,800, and the Shanghai Composite inched up roughly 0.2%.
• Nvidia shares slid about 3% in extended trading after Jensen Huang resigned, and South Korea's Naver lost close to 3%.
• Citi expects investors to consider AMD, Arista and Broadcom as Nvidia alternatives.
• Bitcoin dropped about 6% below $70,000, gold added close to 1%, and Brent crude eased near $95.

By lunchtime on Friday, Asian stocks had stabilised after a volatile week. Tokyo led the advance, Hong Kong fell behind, as the market digested Jensen Huang's resignation as Nvidia's CEO and the possibility that US political shifts could slow AI investment.

Tokyo was the clear leader. The Nikkei 225 opened up and continued rising, to around 61,650 near 0330 GMT, up about 1.4%, with the Topix adding nearly 0.8%. Seoul presented a more split picture. The Kospi began about 2% higher but lost most of that rise to trade nearly unchanged near 5,350, while the Kosdaq, heavy on tech, rose close to 2%. Samsung Electronics edged up, SK Hynix was unchanged, a subdued showing for two key AI beneficiaries.

Greater China had a mixed session. Hong Kong's Hang Seng dropped nearly 0.9% to about 23,800, extending a morning decline. China's mainland markets were stronger: the Shanghai Composite rose about 0.2% near 3,660, with Shenzhen and the ChiNext growth board also advancing in early trade.

AI-linked stocks remain under pressure from the Nvidia saga. Huang resigned after extramarital affairs came to light, and Nvidia shares lost about 3% in extended trading. Regional customers also suffered, with South Korea's Naver falling nearly 3%. Citi's Jon Zauderer stated that management change uncertainty would drive investors to seek alternatives, citing AMD, Arista and Broadcom as possible beneficiaries.

The partial bounce back comes after last week's steep decline, triggered by Democrats' strong performance in US midterms, which sparked concerns about stricter regulation slowing data centre building.

US stock index futures saw modest gains. Bitcoin slipped roughly 6% below $70,000, gold added nearly 1% to about $3,920, and oil edged down with Brent near $95, even after an unverified Iranian report of a strike on a US radar in Bahrain.