Business & Finance

Asian Markets Rise as U.S. Midterm Gains Offset AI‑Related Sell‑offs

By AP

Brent crude was trading near $94, its lowest level in two months, as shares linked to artificial intelligence extended losses. South Korea’s Kospi fell more than 4% on heavy selling of chipmakers, ending 3.5% lower at 5,484.38. Samsung Electronics shares dropped 5.7% and memory chipmaker SK Hynix fell 7.4%. In Tokyo, the Nikkei 225 declined 0.5% to 61,914.53. SoftBank Group, an OpenAI investor, fell 5.3%; Tokyo Electron slipped 7.7% and Advantest tumbled 9.4%. Taiwan’s Taiex lost 1.6%. U.S. stocks typically rise after midterms, and the S&P 500 jumped 1.6% on Wednesday. The Dow gained more than 1,500 points, and the Nasdaq composite rose 1.4%. Asian markets less exposed to AI largely climbed on Thursday. Hong Kong’s Hang Seng rose 2.8% to 24,597.59 and the Shanghai Composite edged 0.1% higher. Australia’s S&P/ASX 200 increased 1.9% to 9,003.40. On Wall Street, hospital owners and dollar‑store chains helped drive the rally after nationwide losses for Republicans. The election’s long‑term impact on the market is considered limited, with investors focusing on corporate profits and interest rates rather than political control. Investors view split control of Washington as reducing the risk of transformative economic changes. Concerns remain for Trump Media & Technology Group, which fell 24.5% to $4.49, and for Elon Musk’s businesses, with Tesla down 3.3% and SpaceX down 3.8%. Trump Media’s main platform, Truth Social, is known for Trump’s posts. Musk, a former top Trump adviser, faces potential investigations by a Democratic‑controlled Congress. The Republican setback has raised worries that AI‑driven share price gains may be excessive. A Democratic Congress could pressure Trump to ease the Iran war, hurting defense contractors. Lockheed Martin fell 6.9%, Northrop Grumman down 4.5% and General Dynamics lost 2.6%. The possibility of reduced war spending also pushed Brent crude down 8.7% to $94.62, hurting oil majors. ExxonMobil fell 4.6% and ConocoPhillips dropped 5.2%. Early Thursday, Brent crude was down 0.8% to $93.91 per barrel, while U.S. benchmark crude fell 1% to $87.27 per barrel. Falling oil prices typically hurt renewable‑energy stocks, but Democratic control could benefit solar and wind firms. First Solar rose 4.6% and Enphase Energy climbed 3.7%. The U.S. dollar slipped to 157.96 yen from 158.41 yen, while the euro rose to $1.1256 from $1.1228.