Asian Markets Rise as South Korea Shares Slide

Asian stock markets mostly advanced Thursday, November 5, 2026, following a strong rally on Wall Street after the US midterm elections. However, South Korea's Kospi fell sharply as investors sold semiconductor and artificial intelligence-related shares, reflecting concerns about technology valuations.

South Korea's benchmark Kospi briefly dropped more than 4% before trading 3.5% lower at 5,484.38 by late morning, according to market figures reported by The Associated Press.

Samsung Electronics shares declined 5.7%, while SK Hynix, a major memory chip manufacturer, lost 7.4%. The selling also affected other regional technology companies.

Japan's Nikkei 225 slipped 0.5% to 61,914.53. SoftBank Group dropped 5.3%, Tokyo Electron fell 7.7%, and semiconductor testing equipment manufacturer Advantest plunged 9.4%. Taiwan's Taiex also declined 1.6%.

Other Asian markets recorded gains. Hong Kong's Hang Seng Index climbed 2.8% to 24,597.59, while the Shanghai Composite edged up 0.1%. Australia's S&P/ASX 200 advanced 1.9% to 9,003.40.

The regional performance followed a broad US stock market rally on Wednesday. The S&P 500 gained 1.6%, the Dow Jones Industrial Average surged more than 1,500 points, representing a gain of over 3%, and the Nasdaq Composite rose 1.4%.

The rally followed the midterm election results, which ended the Republican Party's sole control of Washington. Stocks of hospital operators and dollar-store companies serving lower-income consumers were among the contributors to Wall Street's gains, according to The Associated Press.

Although election outcomes do not necessarily determine long-term market performance, investors generally favor divided political control because it can reduce the likelihood of major economic policy changes. Corporate earnings prospects and interest rates remain important factors influencing share prices.

Investors also reassessed companies connected to President Donald Trump, the artificial intelligence industry, and businesses owned by Elon Musk following the Republican setback.

Trump Media & Technology Group suffered one of Wednesday's steepest declines, falling 24.5%. Its shares traded at $4.49 after briefly reaching $175 five years earlier. The company's primary business is the Truth Social platform.

Musk-related companies also recorded losses. Tesla shares fell 3.3%, while SpaceX declined 3.8%. Musk, a former senior adviser to Trump who made substantial donations to Republicans, could face scrutiny from a Democratic-controlled Congress, according to the AP report.

Concerns about political pressure also affected defense contractors. Expectations that a Democratic-led Congress could push Trump to reduce US involvement in the war with Iran weighed on military equipment manufacturers.

Lockheed Martin shares fell 6.9%, Northrop Grumman declined 4.5%, and General Dynamics lost 2.6% during Wednesday's trading session.

Oil prices also retreated amid expectations of possible changes in US foreign policy. Brent crude, the international benchmark, plunged 8.7% to $94.62 per barrel on Wednesday.

Early Thursday, Brent crude slipped another 0.8% to $93.91 per barrel. US benchmark crude fell 1% to $87.27 per barrel. The decline weighed on major oil producers, with ExxonMobil losing 4.6% and ConocoPhillips dropping 5.2% on Wednesday.

Renewable energy companies moved in the opposite direction as investors considered the potential implications of Democratic control of Congress. First Solar gained 4.6%, while Enphase Energy advanced 3.7% during Wednesday's session.

Currency trading also showed modest movements early Thursday. The US dollar weakened to 157.96 Japanese yen from 158.41 yen, while the euro strengthened to $1.1256 from $1.1228.