BEIJING (dpa-AFX) - Asian stocks ended mixed on Thursday as regional chipmaking shares slumped on expectations of tighter tech oversight.
Technology stocks slumped in South Korea and Japan on concerns that a Democratic-led U.S. Congress could push for tighter regulation of AI development and data center construction, which could lead to a slowdown in capex.
Underlying sentiment remained underpinned elsewhere across Asia as global bond yields eased and Brent crude prices plummeted to $95 a barrel on hopes that the U.S.-Iran war could end soon.
Brent crude futures were up half a percent at $95.08 barrel in Asian trade, after having fallen nearly 9 percent in the previous session, as Democrats' sweeping victory in the U.S. midterm elections along with diplomatic signals from Washington and Tehran helped strip the risk premium out of crude.
Global bond yields also eased as investors mulled what a divided government will mean for the war with Iran, President Trump's policy agenda and the AI trade.
Gold prices rose nearly 2 percent to $4,125 an ounce after witnessing the biggest jump since August on Wednesday as the dollar and Treasury yields slipped.
China's Shanghai Composite index edged up 0.10 percent to 3,689.91, extending rebound for a second day after top financial regulators announced measures to inject liquidity into the market.
Hong Kong's Hang Seng index surged 3.67 percent to 24,796.98, led by tech giants such as Alibaba and Tencent.
Japanese markets fell sharply due to a sharp sell-off in AI and chip shares. The Nikkei average dropped 1.79 percent to 61,077.90 while the broader Topix index settled 1.16 percent higher at 3,940.39.
Advantest plunged 14.7 percent and Tokyo Electron declined 9.4 percent on bets that Democrats will slow the pace of data center expansion in the U.S. Automaker Toyota Motor skyrocketed 16.7 percent after raising its profit forecast.
Seoul stocks nosedived as chipmakers plummeted on concerns that tighter regulation of artificial intelligence infrastructure in the U.S. could curb investment in data centers and weaken demand for semiconductors.
The Kospi index plunged 5.28 percent to 5,383.80 as foreign investors extended their selling streak to a fifth session. Samsung Electronics tumbled 7.6 percent, Hanmi Semiconductor gave up 9.1 percent, SK Hynix lost 9.5 percent and Samsung Electro-Mechanics plummeted 15.3 percent.
Australian markets rallied to hit a two-month high as oil prices retreated to two-month lows on bets the U.S. mid-term election result will reduce the odds of an Iran war escalation.
The benchmark S&P/ASX 200 surged 2.61 percent to 9,065.10, with IT, retail, real estate and healthcare stocks leading the surge. The broader All Ordinaries index closed 2.80 percent higher at 9,205.20.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index climbed 2.23 percent to 14,090.97, marking its best single-day gain in nearly 19 months and reaching an all-time high.
Overnight, U.S. stocks soared, Treasury yields dropped across the curve and oil prices nosedived nearly 9 percent as a commanding 'blue wave' in the midterms eased political uncertainty and stoked hopes that the war with Iran could end.
President Donald Trump said he was 'absolutely willing' to accept the results of the midterm elections and work with Democrats to address political issues.
As traders rethink Trump's remaining policy agenda and the political trajectory into 2028, analysts said a divided government and a degree of gridlock to the economic backdrop is favorable for equity prices.
In economic news, payroll processor ADP reported that U.S. companies added more jobs in October than expected. A separate report showed the U.S. service sector expanded in October at the slowest pace in three months amid continuing cost pressures.
The Dow soared 3 percent to reach a two-month closing high and record its biggest single-day gain since April 9 last year, when President Trump announced the first pause on reciprocal tariffs.
The S&P 500 surged 1.6 percent and the tech-heavy Nasdaq Composite climbed 1.4 percent.
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