Nikkei 225 and KOSPI were the best performers for the day, gaining 1.2% and 2.8%, respectively

Asian stocks were mixed on Monday, with Japanese and South Korean markets leading gains on a rebound in technology shares, while China lagged even as data showed a slight improvement in inflation.

Markets took some positive cues from U.S. stock futures, which rose on reports that a long-running government shutdown was close to an end. S&P 500 Futures soared 0.6% in Asian trade.

But Asian markets were still nursing steep losses from last week, following a rout in technology stocks on doubts over artificial intelligence-driven valuations.

Nikkei 225 and KOSPI were the best performers for the day, gaining 1.2% and 2.8%, respectively. Gains in tech also helped Hong Kong’s Hang Seng add 0.3%.

The indexes were aided chiefly by a rebound in technology shares, as investors bought the dip in the sector following deep losses last week.

South Korean chipmakers SK Hynix Inc and Samsung Electronics Co Ltd climbed 5% and 2.3%, respectively, while Japan’s Advantest Corp. and Tokyo Electron Ltd. rose 3.9% and 4.3%, respectively.  Taiwan’s TSMC advanced 1% in early trade.

In addition to bargain buying, chipmakers were also supported by comments from NVIDIA Corporation CEO Jensen Huang, that the company was seeing very strong demand for its advanced Blackwell AI chips.

But concerns over AI-fuelled valuations in tech were a major driver of last week’s losses.

Among other sectors, Japanese e-commerce firm Mercari Inc surged more than 10% and was the top performer on the Nikkei 225 after clocking strong quarterly earnings.

Shanghai Shenzhen CSI 300 and Shanghai Composite indexes moved in a flat-to-low range on Monday.

Data released over the weekend showed China’s consumer price index inflation rose more than expected in October, aided by the Golden Week holiday.

The figures showed Chinese consumer inflation increasing for the first time since June, raising hopes for a bigger pick-up in inflation.

Producer price index inflation also dipped slightly less than expected. But the figure also logged its 37th straight month in red.

Despite the improvement in inflation, October’s data still showed China grappling with a persistent deflationary trend, as consumer spending remained weak after the Golden Week holiday.

Broader Asian stocks were a mixed bag on Monday. Straits Times index slipped 0.8%, while ASX 200 gained 0.7%.

The ASX was aided by a 1.8% increase in major lender ANZ Group Holdings Ltd, as pledges of more cost cuts helped investors look past a weaker-than-expected annual cash profit.