Earnings concerns weigh on chip stocks
Disappointing results from U.S. chip designers Qualcomm and Arm Holdings set off the Asian semiconductor selloff, according to Investing.com, reviving doubts about the industry's growth outlook. The Philadelphia Semiconductor Index had fallen 3.1% overnight, reaching a six-month low.
In South Korea, the selling triggered a sell-side trading curb, known as a sidecar, before the KOSPI closed down 5.3%. Samsung Electronics lost 7.6% and SK Hynix dropped 9.5%, Investing.com reported.
Japan's losses were concentrated in chip and AI-related stocks. Advantest fell 14.7%, Lasertec lost 14.2%, Kioxia Holdings declined more than 13% and SoftBank Group dropped 7%. Despite the Nikkei's 1.7% decline, the TOPIX gained 1.2%.
ARIVA also cited expectations of a Bank of Japan rate increase as a drag on Japanese stocks. A Reuters poll conducted before the central bank's October 30, 2026 meeting found that 69% of economists expected its policy rate to reach 1.50% that quarter, according to investingLive. Among respondents who specified a month, about 80% chose December rather than the meeting ending October 30.
There were gains in individual Japanese stocks. ARIVA listed Sony Group at 24.26 euros, up 5.43%, and Toyota at 19.024 euros, up 7.63%. Its stock table separately quoted Samsung's GDR at 3,350 euros, down 5.37%.
Chinese policy support and Australian trade data
Chinese semiconductor shares moved against the regional chip selloff after the People's Bank of China lowered the rate on its relending facility for share buybacks and share purchases. The 25-basis-point cut brought the rate to 1%, according to Investing.com.
Chinese chipmakers led gains as Hong Kong's Hang Seng rose 3.6%. Mainland gains were smaller: the CSI 300 added 0.3% and the Shanghai Composite rose 0.1%. ARIVA also cited positive U.S. market cues as support for stocks in China and Hong Kong.
Australia's S&P/ASX 200 gained 2.6% following stronger-than-expected trade figures, Investing.com reported. The country's seasonally adjusted goods trade surplus reached A$2.83 billion in September, up from A$184 million in August. Economists had expected A$940 million; the September figure was the highest in seven months.
U.S. election raises questions over AI oversight
The U.S. election results added another source of pressure on technology shares. Democrats won both the Senate and the House of Representatives in the November 3, 2026 midterms, according to Morningstar. Analysts said the outcome increased the prospect of regulatory scrutiny of AI and data centers.
AI-linked stocks faced selling as investors weighed the risk of reduced investment. UBS analysts nevertheless said greater congressional oversight would "not necessarily derail the AI investment cycle."
Oil retreats as Iran tensions ease
Falling oil prices helped support equities, with ARIVA linking the decline to an easing of political tensions surrounding the Iran conflict. On Wednesday, November 4, Brent crude settled at $94.62 a barrel after an 8.7% drop, while U.S. West Texas Intermediate fell 8.3% to $88.12, according to Investing.com.
Those settlements put both benchmarks at their lowest levels in about two months. CNBC identified August 31 as the last time prices had been that low.
CNBC reported that the U.S.-Israeli war with Iran, launched in February 2026, had disrupted energy markets for eight months. Oil had risen more than 10% in October before the post-election plunge.
JPMorgan estimated that global oil supply had returned to a surplus in September, exceeding demand by 1.1 million barrels per day. That surplus widened to 1.4 million barrels per day in October, according to CNBC.
