China Spy Allegations Targeting Nvidia CEO Rattle Asian Markets, Stoke Fears of Tech Weakness

Allegations of Chinese espionage targeting Nvidia Chief Executive Officer Jensen Huang are raising concern that investor appetite for Asian technology shares could weaken.

Bloomberg reported on November 8 that Nvidia's board has started investigating whether Huang was targeted by a foreign intelligence operation. The US government suspects Alice Huang, a former executive at Megaspeed International, may have been recruited by Chinese intelligence and used to approach the Nvidia CEO.

The report triggered declines in futures contracts tracking Nvidia shares on decentralized trading platform Hyperliquid. Major US equity-index futures also swung between gains and losses in early Asian trading. Bitcoin likewise whipsawed, falling to about $74,000 before recovering to around $75,000.

The allegations emerged after global technology shares had already undergone a sharp correction. Japanese and Taiwanese stocks entered technical bear markets last week on concern that artificial intelligence-related shares had become overvalued, while global stock indexes fell to their lowest level in six months. Uncertainty over fiscal policy and the regulatory environment after the US midterm elections has also weighed on investor sentiment.

"The spy allegations surrounding Nvidia will weigh on Asian markets early this week," Nick Twidale, chief market analyst at AT Global Markets, said. He added that the matter is creating significant uncertainty over the outlook for one of the world's biggest AI companies.

Oil prices fell on expectations of easing tensions between the US and Iran. After US President Donald Trump said the chances of additional airstrikes were very low if progress is made in nuclear talks and discussions on reopening the Strait of Hormuz, Brent crude traded around $97.50 a barrel, down 0.8%.

In foreign-exchange markets, the dollar was mixed against major currencies. The US currency rose 0.4% last week, supported by haven demand during the global equity selloff and solid US employment data. Markets are pricing in about an 80% chance that the Federal Reserve will raise interest rates by year-end.

Investors are now turning their attention to the US consumer price index due on November 10. The data will be a key gauge of the Fed's rate path, while China's consumer and producer price readings are also poised to influence the near-term direction of Asian financial markets.