Chips Slide on US Regulation Fears & China Tech Stocks Rally - Europe Market Wrap
Asian stocks diverged as investors rotated away from regional chipmakers following the US midterm elections. South Korea’s Samsung and SK Hynix both fell more than 7% amid concerns over tighter US data center regulations, dragging the Kospi down 5.2%. Meanwhile, China’s Tencent and Alibaba gained more than 6% each, lifting Hong Kong’s Hang Seng Tech Index 5%. US Nasdaq 100 futures fell 1.2%, pointing to further weakness in chip stocks. Consumer shares led gains across Asia, with Toyota, Alibaba and Sony among the biggest contributors. Australia’s benchmark index rose 2.5% and India’s Nifty 50 gained 1.8%, while Japan’s Nikkei 225 fell 1.6% despite the broader Topix rising 1.3%. Brent crude extended Wednesday’s decline of more than 8%, falling another 0.7% to $93.94 per barrel. Investors bet that a Democratic sweep of Congress could accelerate efforts to end the Iran conflict, now in its ninth month, easing supply concerns and weighing on oil prices. Treasuries advanced for a second consecutive day as investors anticipated that lower oil prices could curb inflation and constrain the Trump administration’s tax and spending plans. Yields fell at least 2 bps across the curve, with the
Asian stocks diverged as investors rotated away from regional chipmakers following the US midterm elections. South Korea’s Samsung and SK Hynix both fell more than 7% amid concerns over tighter US data center regulations, dragging the Kospi down 5.2%. Meanwhile, China’s Tencent and Alibaba gained more than 6% each, lifting Hong Kong’s Hang Seng Tech Index 5%. US Nasdaq 100 futures fell 1.2%, pointing to further weakness in chip stocks.
Consumer shares led gains across Asia, with Toyota, Alibaba and Sony among the biggest contributors. Australia’s benchmark index rose 2.5% and India’s Nifty 50 gained 1.8%, while Japan’s Nikkei 225 fell 1.6% despite the broader Topix rising 1.3%. Brent crude extended Wednesday’s decline of more than 8%, falling another 0.7% to $93.94 per barrel. Investors bet that a Democratic sweep of Congress could accelerate efforts to end the Iran conflict, now in its ninth month, easing supply concerns and weighing on oil prices.
Treasuries advanced for a second consecutive day as investors anticipated that lower oil prices could curb inflation and constrain the Trump administration’s tax and spending plans. Yields fell at least 2 bps across the curve, with the benchmark 10-year yield dropping as much as 5 bps to 4.84%, its lowest since September 10. The Dollar weakened against all but one of its Group-of-10 peers.