According to ME News, on November 5 (UTC+8), the Democratic Party secured full control of both chambers of the U.S. Congress, triggering sector rotations in Asian markets. On Thursday, memory chip giant SK Hynitz fell over 9%, while Samsung Electronics dropped 7%, dragging the Korean KOSPI index down more than 5%.
Meanwhile, stock prices of automakers such as Toyota and Honda rose approximately 5%, pushing the Tokyo Stock Exchange Index up by 1%. Other consumer companies, including Fast Retailing, the parent company of Uniqlo, also saw strengthened share prices. As the Democratic Party leveraged voter concerns about artificial intelligence in the midterm elections, market worries about potential delays in data center construction have intensified.
In addition to adopting defensive investment strategies amid the decline in tech stocks, investors have also been buying automotive stocks, betting that car manufacturers could benefit if U.S. President Trump eases tariff policies. “We are seeing continued outflows from the semiconductor sector, with a clear rotation trend emerging. The market is penalizing sectors most vulnerable to potential regulatory headwinds, and semiconductors are one such area,” said Tim Watter, Chief Market Analyst at KCM Trade. (Source: ODAILY)