Asian Markets Diverge as Midterm Results Reshape Energy and Tech Outlook

Crude futures continued their downward trajectory in Asian trading, with front-month WTI dropping 1.4% to $86.93 a barrel and Brent falling 0.8% to $93.85. This follows an 8% slump on Wednesday, a movement MUFG analyst Lloyd Chan attributes to an unwinding of geopolitical risk premiums previously baked into energy prices. The resulting decline in jet-fuel costs buoyed airline stocks, with Japan Airlines climbing 6.2% and Singapore Airlines adding 3.2%, even as energy giants like PetroChina and Mitsui O.S.K. Lines faced significant losses.

The outlook for the AI sector remains fractured. While South Korean semiconductor leaders SK Hynix and Samsung Electronics saw shares tumble—triggering a trading halt on the Kospi—Chinese chip makers including Moore Threads and SMIC bucked the trend with modest gains. Jonas Goltermann of Capital Economics suggests the immediate pressure on the AI boom stems from potential state-level regulatory hurdles, forcing investors to pivot toward e-commerce platforms like Alibaba and Meituan. Meanwhile, Asian bond yields softened across Japan, Australia, and New Zealand, and spot gold rose 1.8% to $4,133.55 an ounce as capital sought refuge in safer assets.