Asian stocks slip on Nvidia turmoil as Nikkei rallies

Most Asian stock markets closed lower on Friday, November 13, after giving up early gains. Investors were reacting to the leadership crisis at Nvidia ↘ 2.01% and to growing bets that the Federal Reserve will raise rates. Tokyo was the exception. Japan's Nikkei 225 finished higher and recorded its best week in five months, as buyers returned to chip stocks.tradingview.com

Emerging-market stocks fell on the day. Even so, they were on track for their first weekly gain since late September, as investors bet that the wider AI industry would get through the upheaval at Nvidia.bloomberg.com+1

Nvidia shock and rising yields

Co-founder Jensen Huang resigned as Nvidia's chief executive, and the shares fell as much as 14% on Thursday before ending down 4.3%. Chief Financial Officer Colette Kress is serving as interim CEO while the board looks for a permanent replacement. Rising oil prices added to the pressure. Treasury yields climbed after President Donald Trump played down hopes of a diplomatic deal with Iran, and the dollar reached its highest level in about 19 months. Hong Leong Investment Bank said markets now see a December rate increase as almost certain.in.investing.com+2

Chinese markets took the biggest hit. Hong Kong's Hang Seng Index fell 1.5%, and the city's tech index dropped 3%. On the mainland, the Shanghai Composite Index slipped 0.59% and the ChiNext Index fell 3.32%. Investors worried that Chinese AI companies could lose access to advanced chips. Alibaba ↗ 0.02% fell after an update on its chip spin-off. Australia's S&P/ASX 200 also closed lower.tradingview.com+1

Chipmakers drive weekly gains

The Nikkei gained 6.46% for the week, and the broader Topix rose 6.3%. South Korea's Kospi fell 0.98% on Friday but gained 4.56% for the week, after plunging 12% the week before. In Tokyo, Advantest and Tokyo Electron led the chip-sector gains. Nomura strategist Maki Sawada said the week's rally partly reflected a recovery in semiconductor and AI shares, which had been under pressure for a long time.economictimes.indiatimes.com+1

MSCI's emerging-market equity index was up more than 3% for the week. Samsung Electronics and SK Hynix ↘ 4.30% rose, and investors put money into Anthropic's initial public offering. Demand for the Anthropic shares was reportedly about six times the amount on offer.ndtvprofit.com+1

What comes next

Nvidia is scheduled to report third-quarter results on Tuesday, November 17. Senate Banking Committee Chairman Tim Scott has asked Huang to testify. Homin Lee of Lombard Odier said "the firm underlying demand for chips continues to be a main pillar for emerging markets in Asia, especially the semiconductor exporting powerhouses of Taiwan and South Korea".in.investing.com+1