Asian Shares Rise After US Midterms, but Kospi Slips on Chip Selloff

Asian markets were mostly higher Thursday after U.S. stocks surged following the midterm elections. The Dow Jones Industrial Average climbed more than 3% after President Donald Trump’s party lost its exclusive control of Washington.

Brent crude was trading near $94 a barrel, close to its lowest price in two months.

Shares tied to artificial intelligence continued to retreat. South Korea’s Kospi briefly plunged more than 4% as investors sold computer-chip stocks heavily. By late morning, the index was down 3.5% at 5,484.38.

Samsung Electronics dropped 5.7%, while memory-chip producer SK Hynix declined 7.4%.

Tokyo’s Nikkei 225 slipped 0.5% to 61,914.53. SoftBank Group, an investor in OpenAI, fell 5.3%. Tokyo Electron, which makes chip-production equipment, sank 7.7%, while testing-equipment manufacturer Advantest plunged 9.4%.

Taiwan’s Taiex lost 1.6%.

U.S. stocks have historically risen after midterm elections, regardless of the outcome, and the S&P 500 advanced 1.6% Wednesday. The Dow gained more than 1,500 points, while the Nasdaq composite rose 1.4%.

Markets with less exposure to the AI sector generally moved higher across Asia. Hong Kong’s Hang Seng index jumped 2.8% to 24,597.59, while the Shanghai Composite edged up 0.1%.

Australia’s S&P/ASX 200 climbed 1.9% to 9,003.40.

On Wall Street Wednesday, hospital operators and dollar-store chains serving lower-income consumers were among the strongest performers in a broad rally that followed Republican losses nationwide.

The election may have limited long-term influence on the broader market. Stock prices are driven more by corporate earnings and the direction of interest rates than by which party controls Washington. Still, investors typically favor divided government because it reduces the likelihood of sweeping economic policy changes.

At the same time, investors are seeing potential trouble for Trump’s social-media company, the AI sector and businesses controlled by Elon Musk, a major Republican donor.

Trump Media & Technology Group was among the market’s biggest decliners Wednesday, tumbling 24.5%.

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After briefly reaching $175 five years ago, the company’s stock has fallen to $4.49. Its primary business is Truth Social, best known as the platform where Trump posts.

Musk’s companies also came under pressure. Tesla fell 3.3%, while SpaceX dropped 3.8%. Musk, who previously served as a senior Trump adviser, could face scrutiny from a Congress controlled by Democrats.

Trump’s prominent support for the AI industry has also intensified concerns that the rally in AI-related stocks may have pushed valuations too far. The Republican setback added to those doubts.

A Democratic-led Congress could pressure Trump to scale back the war with Iran, weighing on defense contractors and other suppliers to the U.S. military. Lockheed Martin fell 6.9%, Northrop Grumman declined 4.5% and General Dynamics slipped 2.6%.

Expectations of pressure to reduce the war also sent Brent crude, the international benchmark, down 8.7% to $94.62 a barrel. The decline hurt major oil companies, whose shares had risen for much of the year. ExxonMobil lost 4.6%, while ConocoPhillips fell 5.2%.

Early Thursday, Brent crude was down 0.8% at $93.91 a barrel. U.S. benchmark crude declined 1% to $87.27 a barrel.

Lower oil prices often weigh on renewable-energy stocks by reducing the incentive to move away from traditional fuels. However, Democratic control of Congress could benefit solar and wind companies.

First Solar rose 4.6%, while Enphase Energy gained 3.7%.

In other early Thursday trading, the U.S. dollar slipped to 157.96 Japanese yen from 158.41 yen. The euro climbed to $1.1256 from $1.1228.

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AP Business Writers Dave McHugh in Frankfurt, Germany, and Stan Choe in New York contributed to this report.