Asian Shares Mixed As AI-data Center Stocks Slide On Regulation Worries

Asian stocks closed mixed on Thursday as regional chipmaking shares dropped due to expectations of stricter technology oversight, according to dpa-AFX. Technology stocks suffered in South Korea and Japan, following concerns that a Democratic-led US Congress might impose tighter regulations on AI development and data centre construction, potentially slowing capital expenditure.

Despite these concerns, sentiment remained generally stable across Asia, as global bond yields softened and Brent crude prices plummeted to US$95 (RM384.42) per barrel, anticipating a potential end to the US-Iran war. Brent crude futures increased by 0.5% to US$95.08 a barrel in Asian trade after falling nearly 9% the previous day, as Democrats' victory in the US midterm elections and diplomatic overtures from both Washington and Tehran removed the risk premium from crude.

Global bond yields also eased as investors contemplated the implications of a divided government on the Iran war, President Trump's policy agenda, and the AI trade. Gold prices rose nearly 2% to US$4,125 an ounce, marking the largest increase since August of the previous year as the dollar and Treasury yields declined. China's Shanghai Composite index edged up 0.1% to 3,689.91, continuing a two-day rebound following top financial regulators' announcement of measures to inject liquidity into the market.

Hong Kong's Hang Seng index surged 3.67% to 24,796.98, propelled by tech giants such as Alibaba and Tencent. Japanese markets declined sharply due to a sharp drop in AI and chip shares. The Nikkei average fell 1.79% to 61,077.90 while the broader Topix index climbed 1.16% to 3,940.39. Japanese chip testing equipment manufacturer Advantest plummeted 14.7% and Japanese chip equipment maker Tokyo Electron declined 9.4% on speculation that Democrats would hinder the pace of data centre growth in the US.

Japanese automaker Toyota Motor soared 16.7% after raising its profit forecast. Seoul stocks plummeted as chipmakers dropped on concerns that tighter US regulations could curb investment in data centres and reduce demand for semiconductors. The Kospi index fell 5.28% to 5,383.80 as foreign investors extended their losses to a fifth straight day.

Australian markets rallied to reach a two-month high as oil prices slipped to two-month lows on hopes that the US midterm election result would decrease the likelihood of an escalation in the Iran war. The benchmark S&P/ASX 200 surged 2.61% to 9,065.10, with IT, retail, real estate, and healthcare stocks driving the rally. The broader All Ordinaries index closed 2.8% higher at 9,205.20.

In New Zealand, the benchmark S&P/NZX-50 index climbed 2.23% to 14,090.97, marking its best single-day gain in nearly 19 months and achieving an all-time high.