MSCI’s Asia Pacific equity index climbed 0.3%, a sixth straight day of gains, with Japanese markets closed for a holiday. Bellwether chip stocks such as Samsung Electronics Co. and SK Hynix Inc. climbed.

Earlier, Shopify Inc. jumped 7.1% after striking a partnership with Meta Platforms Inc. for its new Muse AI agent. Concerns about how AI would erode margins and fees at financial brokerages spurred a selloff in US financial stocks and dragged other key equity indexes.

Read more: Stocks in news: Adani Group, OMCs, Persistent Systems and IRB Infra

Elsewhere, Brent fell as much as 1% before paring its losses to trade around $99.10 a barrel as President Donald Trump said US officials had a “very good” meeting with Iranian envoys as Washington renewed efforts to end the conflict. Gold and a Bloomberg gauge of the dollar held their gains from the previous session. There will be no cash trading in Treasuries due to the Japan holiday.

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Technology stocks are reasserting their leadership in global markets, with chipmakers again emerging as a key source of gains. With the economic data calendar thin this week, further advances may hinge on whether diplomacy can push oil prices lower and ease pressure on bond yields. Investors are also looking to the summit between Trump and China’s Xi Jinping for signs of progress on trade and other economic disputes.
“Focus will stay on geopolitics, and if there’s any confirmation of progress towards a ceasefire between the US and Iran, look for oil and yields to fall further and for stocks to rally,” said Tom Essaye at The Sevens Report.Chipmakers surged at the start of the week amid early signs of success for Meta’s AI agent. Still, shares in several Asian consumer-facing industries, including major banks, insurers and online travel stocks, may come under pressure, after fears that Meta’s Muse may upset businesses relying on so-called consumer inertia.

Consumer inertia is the tendency to keep buying something out of habit even when better alternatives exist.

“For now, semiconductors and memory remain at the center of the equity conversation,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note.

Crude oil remains another key focus area for markets as Saudi Arabia moved to restart a key pipeline and the US flagged progress in talks with Iran to end a war that’s rocked supplies from the Middle East.

Investors are also parsing commentary from Federal Reserve officials for clues on the rate path after last week’s quarter-point hike.

Richmond Fed President Tom Barkin warned inflationary shocks could take time to fade, while Boston’s Susan Collins backed the increase and St. Louis Fed President Alberto Musalem said further hikes may be needed.

“Central banks face a potentially difficult trade-off: The fight against inflation has in many countries not yet been won, and policy rates that are too low risk unanchoring inflation expectations and pushing long-term yields higher,” Daniel Bergvall, head of economic forecasting at Skandinaviska Enskilda Banken AB, wrote in a report.

Jaguar Land Rover expanded an existing recall to include an additional 23,677 vehicles over an electronic system error that may lead to the loss of drive power and exterior lighting, according to federal regulators.

About 23,677 vehicles are affected by the recall, including 2021-2024 Land Rover Range Rover Velar, 2019-2024 Land Rover Range Rover Sport, 2020-2024 Land Rover Range Rover Evoque, 2020-2024 Land Rover Range Rover, 2021-2024 Jaguar F-Pace, 2021-2024 Jaguar E-Pace, 2020-2024 Land Rover Discovery Sport, 2021-2024 Land Rover Discovery and 2020-2024 Land Rover Defender models.

The recall was initiated because a DC-DC converter may malfunction due to an electrical overload that can happen during high power demand, the National Highway Traffic Safety Administration (NHTSA) said in its recall notice.

VOLKSWAGEN RECALLS 208,000 SUVS OVER BOLTS THAT COULD CAUSE STEERING LOSS

Jaguar Land Rover issued a recall for more than 23,000 vehicles over an electronic system error that may lead to the loss of drive power and exterior lighting. (Getty Images / Getty Images)

A software error can also cause the converter to stop functioning at vehicle start-up, which may result in the loss of drive power and exterior lighting.

“Failure of the DC-DC converter will result in the loss of 12-Volt system charging and can lead to complete loss of drive power and exterior lighting,” the notice reads.

Jaguar Land Rover estimates that all the listed vehicles are affected by the defect.

FORD RECALLS MORE THAN 223,000 VEHICLES OVER FUEL TANK ISSUE

About 23,677 vehicles are affected by the recall. (Anna Barclay/Getty Images / Getty Images)

The affected vehicles use a high-voltage battery system alongside a conventional 12-volt battery that powers systems such as lighting and electronic accessories. The DC-DC converter charges the 12-volt battery from the high-voltage system.

The lithium-ion battery is charged at a charging station, and the lead battery is charged with power from the lithium-ion battery, according to Panasonic. As the lithium-ion battery is charging, a DC-DC converter converts high-voltage DC power into low-voltage DC power.

Jaguar Land Rover has received 393 claims and field reports about the issue in the U.S., according to the NHTSA.

Jaguar Land Rover estimates that all the listed vehicles are affected by the defect. (Getty Images / Getty Images)

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No accidents, injuries or fires have been reported.

Dealerships will update the vehicle software at no cost. The update will introduce a new “limp-home” mode, providing a warning to the driver in case the DC-DC converter goes offline.

Interim letters notifying owners of the safety risk are expected to be mailed on Nov. 13. Additional letters will be sent out once the final remedy is available. 

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For European brands, all of this could not have happened at a worse time. The loss of the steady stream of profits from China, and the emergence of Chinese rivals on their home turf, has come after they invested heavily in producing electric vehicles (EVs). But EV sales have not increased as quickly as expected. Executives admit they have struggled to match the low production costs and development speed of the Chinese insurgents.

The result is that European manufacturers are now rushing to cut costs, while wondering what to do with expensive factories capable of producing millions more cars than they are able to sell.

Volkswagen has already announced plans to cut 100,000 jobs over the next few years. Whereas once closing plants in Germany would have been unthinkable, the company has now shuttered one in Dresden and may shut down four more. That includes a site in Zwickau, where VW spent over €1bn (£857m) converting production lines to build electric vehicles – a process that was completed just four years ago.

Industry estimates indicate that western European car plants have roughly 2.5 million vehicles worth of annual spare capacity.

Little wonder that car makers are jealously eyeing soaring defence budgets across Europe.

Sigrid de Vries says car makers are well placed to help Europe rearm.

“Many of the capabilities that defence needs are needed for and also delivered by the automotive sector,” she says. “So automotive manufacturers and suppliers possess industrial assets, they possess manufacturing expertise, logistics capabilities, also advanced technologies. They have vast and also very integrated supply chains that may be relevant for Europe’s broader defence preparedness objective.”

But it is not that simple – security protocols, political and economic rivalries within Europe plus the fact that unless you’re actually at war, the volumes will not replace the mass consumer market, all of which present challenges, she says.

“These are two very different worlds,” she says. Governments want to invest in their defence capabilities and that is why it’s now, more than ever, interesting for manufacturers and suppliers to see what’s possible, but it will not be enough to address the underutilisation of manufacturing capacity we currently see.”

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of EPD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.