Asian markets mixed as tech stocks slide and US midterm news weighs on equities

US stock futures and Asian equities plummeted alongside the dollar as early results of US midterm elections infiltrated global markets, potentially jeopardizing President Donald Trump's agenda amid a possible Democratic landslide. The benchmark S&P 500 index futures dropped 1.06 percent, reversing a 0.5 percent gain earlier in the day as early election results began to trickle in on Wednesday.

The tech-focused Nasdaq 100 futures fell 1.9 percent, while Dow Jones index futures dropped 0.7 percent. The US dollar weakened against its 10 peer currencies. While stock-index futures declined, US Treasuries benefited, with the 10-year note's yield decreasing seven basis points to 4.89 percent, according to Bloomberg data. The selloff in stocks index-futures occurred as investors feared a Democratic-controlled House and Senate would lead to stricter regulations and greater scrutiny of tech-heavy sectors, including artificial intelligence firms.

Nomura Holdings' senior rates strategist, Andrew Ticehurst, told Bloomberg that early headlines and prediction markets indicated a growing chance of a "blue wave," which is generally considered unfavorable for the dollar and beneficial for US Treasuries. Asian stock markets mirrored the US stock market's downward trend, with MSCI's Asia-Pacific index outside Japan falling 0.5 percent, South Korea's Kospi dropping 3.6 percent, Japan's Nikkei sliding 3.5 percent, and Hong Kong's Hang Seng index falling 0.22 percent.

India's stocks were also expected to open lower. Market participants appeared to be pricing in the potential for a more robust Democratic showing, which could diminish expectations for additional fiscal stimulus, according to Charu Chanana, chief investment strategist at Saxo in Singapore. Democrats are expected to secure significant victories in Tuesday's midterms, including flipping two Senate seats in North Carolina and taking control of Georgia's governorship.

As of 9:45 PM Eastern time, Democrats were projected to win 45 Senate seats, compared to Republicans' 36, with 19 races still to be called. Democrats have also flipped the North Carolina seat, with Roy Cooper's win. To gain a majority, Democrats only need 51 seats. The party's control of the House of Representatives, projected by CNN and CBS, will reshape President Trump's final two years in office, blocking his legislative agenda and enabling investigations into his administration's policies.