Asian Tech Shares Fall as Early US Election Results Raise Policy Questions

Asian stocks fell sharply Wednesday, November 4, led by technology shares, as early US midterm election results pointed to potential Democratic gains in Congress. The results raised concerns about artificial intelligence spending, regulation and the outlook for US fiscal policy, according to Investing.com.

US stock futures also weakened. Nasdaq futures fell more than 2%, while S&P 500 futures declined 1.2%, as early results increased the likelihood that Democrats could gain control of the House and potentially the Senate.

Investors worried that a shift in political power could complicate President Donald Trump’s policy agenda and increase regulatory scrutiny of technology companies. The early results also raised the prospect of political gridlock in Washington.

Technology shares lead losses

Japan’s Nikkei 225 fell 4.5%, while the broader TOPIX index slipped 3.2%. South Korea’s KOSPI dropped 3.8%, with shares of Samsung Electronics down 4.3% and SK Hynix falling 6.1%, Investing.com reported. SK Hynix’s decline was steeper than Samsung’s, while the Nikkei fell more than both TOPIX and KOSPI.

Technology shares remained under pressure after recent concerns about elevated valuations, heavy AI investment and uncertain returns triggered sharp losses across the sector. The election-driven retreat added to that pressure, even as a major US chipmaker reported strong results.

Advanced Micro Devices reported third-quarter revenue of $13.38 billion, up 45% from a year earlier, and forecast fourth-quarter revenue of about $17 billion, according to Investing.com. The forecast exceeded the company’s reported revenue for the third quarter.

The losses in Asian technology shares accompanied the decline in US stock futures, where the Nasdaq contract fell by a larger percentage than the S&P 500 contract. Both moved lower as the early election results emerged.

Singapore nears correction territory

Singapore’s Straits Times Index fell 1.4% to 5,193.61, leaving it about 11% below its September all-time high of 5,828.5. Investing.com reported that, if the losses held through the market close, Singapore shares would technically enter correction territory Wednesday.

Losses in banks and other heavyweight stocks added to pressure from the broader regional sell-off. The Straits Times Index’s decline was smaller than the falls in Japan’s Nikkei 225 and South Korea’s KOSPI.

Elsewhere in Asia, China’s Shanghai Composite edged down 0.1%, while the blue-chip Shanghai Shenzhen CSI 300 fell 1%. Hong Kong’s Hang Seng also edged down 0.1%. Australia’s S&P/ASX 200 declined 1%, matching the percentage drop in the CSI 300.

India’s Nifty 50 moved in the opposite direction, gaining 0.5% and bucking the regional trend, Investing.com reported. Its gain contrasted with the declines across the other markets cited, from the smaller moves in Shanghai and Hong Kong to the sharper losses in Japan and South Korea.

China data and US-Iran talks

In China, the RatingDog services purchasing managers’ index fell to 50.8 in October from 51.6 in September. The reading signaled the slowest expansion in three months, according to Investing.com.

Investors were also monitoring developments in US-Iran peace talks. Tehran and Washington were reportedly reviewing fresh proposals from mediators aimed at resolving their differences and avoiding a return to full-scale war.

Oil prices remained volatile as traders weighed the possibility of easing supply disruptions against the risk of renewed escalation, Investing.com reported.