Asian chip stocks slide as the market rally broadens
Chip-heavy markets in Asia fell while China and European shares gained, extending the post-election split.
Asian chip stocks fell sharply Thursday while Chinese shares and European markets gained, extending a split between AI hardware and the rest of the market after the U.S. midterm elections.
South Korea and Taiwan were among the weakest markets. Samsung Electronics and SK Hynix fell, alongside Japanese chip-equipment makers. Hong Kong and mainland Chinese shares moved higher, and London, Paris and Frankfurt opened with gains.
Investors are weighing whether a Democratic-controlled Congress could bring closer scrutiny of data-center construction and AI spending. That is a risk being priced into shares, not evidence that new restrictions have already been enacted. The move follows Wednesday's selloff in Micron.
Lower oil prices offered a different signal for the broader market. Crude remained well below the levels seen before Wednesday's plunge, while Treasury yields eased. Hopes for a possible end to the Iran war are helping sentiment, but the election result is not a peace agreement.
U.S. futures showed the same split, with Nasdaq 100 contracts lagging the Dow. Thursday's initial jobless claims and preliminary productivity and costs reports are due at 8:30 AM ET, after this edition; the October jobs report follows Friday at 8:30 AM ET.
