Asian shares fell on Wednesday as Democrats won control of both chambers of the US Congress. Japan’s Nikkei 225 fell as much as 4.5% to its lowest level since May, while South Korean and Taiwanese shares also recorded steep losses. The sell-off was concentrated in markets most exposed to US spending on artificial intelligence. Hong Kong and Shanghai saw much smaller declines.
Technology shares lead the losses
In Tokyo, SoftBank Group, an investor in OpenAI, fell 8% during the session. Japanese memory chipmaker Kioxia Holdings dropped 10.8% after its outlook for the October to December quarter fell short of market expectations. The results added to selling pressure that had already begun before US voters went to the polls.
South Korea’s Kospi traded down as much as 3.9%, while Taiwan’s Taiex fell 3.2% in afternoon trading. Both markets are sensitive to orders from US technology companies building data centres. Investors were weighing whether a change of control in Washington could slow that investment. By comparison, Hong Kong’s Hang Seng was down 0.2% and the Shanghai Composite slipped 0.1% in earlier trading.
A weaker dollar lifts India’s rupee
The US dollar fell to its lowest level in more than a month, helping the Indian rupee reach a near two-week high. India also benefited from a return of overseas investment. Foreign investors had bought roughly $1 billion of Indian equities in the first trading days of November after two consecutive months of selling.
Oil reverses early losses as Iran war continues
Oil initially fell as traders assessed what the election might mean for efforts to end the war in Iran. By 05.10 GMT, Brent crude had reversed course to trade 0.8% higher at $104.42 a barrel. US West Texas Intermediate rose 0.5% to $96.59.
The reversal mattered for Asian oil importers. A weaker dollar can ease the cost of crude for buyers whose currencies appreciate, but a higher price per barrel can offset that benefit. Wednesday’s trading left the region’s two largest sources of uncertainty intact: how much US companies will spend on computing capacity and how long the Iran conflict will keep oil prices elevated.
Newshub Editorial in Asia – 4 November 2026
Asian shares fell on Wednesday as Democrats won control of both chambers of the US Congress. Japan’s Nikkei 225 fell as much as 4.5% to its lowest level since May, while South Korean and Taiwanese shares also recorded steep losses. The sell-off was concentrated in markets most exposed to US spending on artificial intelligence. Hong Kong and Shanghai saw much smaller declines.
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