Kospi Jumps 2.24 Percent as Asia Closes Mixed, Nikkei Slips

Asian stock markets closed mixed on Monday, November 2, with Seoul posting the strongest gain in the region and Tokyo ending lower. South Korea's Kospi rose 2.24 percent to close at 5,859.08, clawing back part of a brutal October that cost the index more than 16 percent. India's Sensex rose 1.66 percent and China's Shanghai Composite rose 1.08 percent. Japan's Nikkei 225 fell 0.33 percent to 63,081.86.

The split showed investors picking through the wreckage of Friday's Wall Street technology selloff company by company, rather than buying or selling the region as a block. Falling oil prices helped. Brent crude fell more than 4 percent on Monday after reports that President Donald Trump plans to give diplomacy with Iran more time before deciding on new strikes, and that talks could reopen the Strait of Hormuz.

Seoul leads the rebound

Institutional buyers drove the Kospi higher after the index opened lower. The buying reversed an early loss and built through the session. The rebound still leaves Seoul well below its October levels, and traders said one strong day does not repair the damage done by the global selloff in artificial intelligence and chip stocks.

India matched the mood. The Sensex settled at 75,692.78, up 1,233.25 points, and the Nifty 50 closed at 23,440.80, up 387.70 points or 1.68 percent, a third straight gain. Reliance Industries was the standout, closing up 11.6 percent after its record quarterly profit. Better than expected second quarter earnings, improving domestic data and foreign investors turning buyers all supported the rally, according to PTI reporting. The rupee weakened 21 paise to 94.97 against the US dollar.

China rises on state support talk

The Shanghai Composite added 1.08 percent to 3,638.03, and Hong Kong's Hang Seng rose 0.42 percent, with the Hang Seng Tech Index up about 2.25 percent. Reports that China's central bank and regulators are discussing loans for share buybacks and stock purchases lifted sentiment in both markets. Orbit Post reported the central bank's new 100 billion yuan swap facility for share purchases in a separate story on Monday.

Tokyo misses the bounce

Tokyo went the other way. The Nikkei fell 0.33 percent and the broader Topix lost 0.88 percent. Memory chip maker Kioxia plunged between 15 and 17 percent after a cautious outlook, and Screen Holdings fell sharply on guidance. Tokyo Electron rose about 6 percent on strong profit projections, which limited the Nikkei's loss. The session was Tokyo's last before Tuesday's Culture Day holiday, when Japanese markets stay closed.

Elsewhere, Singapore's Straits Times fell 1.37 percent, Taiwan's weighted index lost 0.65 percent, and Australia's S and P ASX 200 fell 0.58 percent. Factory surveys stayed above the 50 line that separates growth from contraction in Japan and China, though both cooled from September.

Why it matters and what is next

Asia's mixed close sets up a tense week. The US midterm elections fall on Tuesday, November 3, the Reserve Bank of Australia decides on rates on Tuesday, and the US jobs report for October lands on Friday. Oil remains the swing factor: Brent near 108 dollars a barrel is down sharply from last week's highs near 117 dollars, and a Hormuz deal or a return to strikes would move every market in the region at once.