Lates News

Democrats sweep both chambers of the US Congress, driving sector rotation in Asian stock markets. On Thursday, memory chip giant SK Hynix fell more than 9% and Samsung Electronics dropped 7%, dragging South Korea's KOSPI index down more than 5%. Meanwhile, automakers such as Toyota Motor and Honda Motor both rose about 5%, pushing Japan's TOPIX index up 1%. Other consumer companies such as Uniqlo parent Fast Retailing also strengthened. As Democrats leveraged voters' concerns about artificial intelligence to garner support in the midterm elections, market worries about possible delays in data center construction have intensified. In addition to adopting defensive investment strategies amid the tech stock selloff, investors have also been buying auto stocks, betting that automakers could benefit if US President Trump eases tariff policies. Tim Waterer, chief market analyst at KCM Trade, said: "We are seeing continued capital outflow from the chipmaker sector, and the rotation trend is very clear. The market is punishing the areas most vulnerable to potential regulatory headwinds, and the semiconductor industry is one of them."