Asian markets mostly climbed on Thursday, November 5, 2026, following the U.S. midterm elections. While some equity indexes rose, heavy selling of artificial intelligence-related stocks offset gains for some markets, and oil prices were mixed.
Market Reaction to US Midterm Results
Global equity markets responded to the U.S. midterm elections with a rotation in trading patterns. In the United States, the Dow surged more than 1,500 points, the S&P 500 jumped 1.6 per cent, and the Nasdaq composite rose 1.4 per cent, according to AP News. According to Scott Rubner, who leads equity and equity derivatives strategy at Citadel Securities, American stocks are positioned for year-end growth as the election resolves an uncertainty factor, corporate earnings remain strong, and low investor exposure provides room for additional purchasing.
Investors signaled a willingness to look past a potential policy gridlock in Washington after Democrats wrested control of both chambers of the U.S. Congress. The Nasdaq 100 Index rose 0.9 per cent, propelled by gains of over 5 per cent each in Microsoft Corp., Amazon.com Inc. and Apple Inc.
The stock market is now celebrating congressional gridlock, President Trump’s willingness to work with the new Congress, and the fact that the Trump administration may not immediately attack Iran now that new negotiations are anticipated,
Louis Navellier, chief investment officer at Navellier & Associates
Oil Prices Extend Declines
Brent crude sank over 8% to below US$95 a barrel. On Wednesday, Treasury yields experienced a decline across the entire curve as market participants reduced their expectations for Federal Reserve interest-rate increases. The dollar weakened the most in two months.
The retreat in energy prices follows expectations that Democratic midterm gains may lead to faster diplomacy between the U.S. and Iran. Daniel Richards, a Mena economist at Emirates NBD, noted that markets anticipate faster U.S.-Iran diplomacy following the election, stripping out war-risk premium despite falling U.S. crude inventories.
Semiconductor Sector Under Pressure
While Asian markets less heavily exposed to the AI industry mostly climbed, technology shares—particularly those tied to artificial intelligence—suffered. In South Korea, the Kospi sank 4.39%, with Samsung Electronics sinking 7.6% and SK Hynix losing 9.4%, AP News reported.
Regional Market Performance
Market movements varied across Asia. The Hang Seng jumped 3.7% to 24,796.98, and the Shanghai Composite index edged 0.1% higher, to 3,689.91.
| Market | Performance |
|---|---|
| Hang Seng Tech Index | Jumped as much as 5.9 per cent |
| Toyota | Surged 8 per cent |
| Australia Benchmark Index | Climbed 2.3 per cent |
| Indonesia Stocks Measure | Added 2 per cent |
| Malaysia Equities | Advanced more than 1 per cent |
| Hyundai Motors | Advanced 3.7 per cent |
In Tokyo, the Nikkei 225 fell 1.8% to 61,077.90, with SoftBank Group shedding 6.9% and Tokyo Electron skidding 9.5%. In Europe, the German DAX rose 0.6% to 26,598.03, the CAC 40 in Paris surged 1.2% to 8,276.55, and the FTSE 100 gained 1% to 10,935.08, according to AP News.
Outlook for the Bull Market
Some analysts remain confident in the broader market trajectory. Keith Lerner of Truist Advisory Services Inc. observed that equity markets have consistently traded higher one year post-midterm since 1946, a trend that includes every one of the four occurrences where the opposition party gained control of both the House and the Senate.
That supports our base case of giving the bull market the benefit of the doubt, but earnings, the economy, interest rates, valuations, and market trends remain more important to our view,
Keith Lerner, Truist Advisory Services Inc.
Earlier coverage: U.S. Midterms, Employment Data, and Japan Earnings to Drive Markets
