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2026-11-05 10:12:26
[Democrats' sweeping victory in both houses of Congress triggers sector rotation in Asian stock markets: chip stocks plunge, auto and consumer stocks rise] (1) The Democratic Party's sweeping victory in both houses of the U.S. Congress has triggered sector rotation in Asian stock markets. (2) On Thursday, memory chip giant SK Hynix fell more than 9%, and Samsung Electronics fell 7%, dragging down the South Korean KOSPI index by more than 5%. (3) Meanwhile, automakers such as Toyota and Honda saw their share prices rise by about 5%, pushing the Japanese TOPIX index up by 1%; other consumer companies, such as Uniqlo's parent company Fast Retailing, also saw their share prices rise. (4) As the Democratic Party uses voters' concerns about artificial intelligence to gain support in the midterm elections, market concerns about potential delays in data center construction are growing. (5) In addition to adopting a defensive investment strategy when technology stocks fall, investors are also buying auto stocks, betting that automakers may benefit if U.S. President Trump relaxes tariff policies. (6) Tim Waterler, chief market analyst at KCM Trade, said that funds continue to flow out of the chip manufacturing sector, and the rotation trend is very obvious; the market is punishing those sectors most vulnerable to potential regulatory hurdles, and the semiconductor industry is one of them.
