{
  "id": 18902891,
  "title": "AI rout after US midterms hits Asia hard, reviving out-of-favour Chinese and Indian stocks",
  "url": "https://urgent.news/2026/11/08/ai-rout-after-us-midterms-hits-asia-hard-reviving-out-of-favour-18902891",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-08T02:31:26.000Z",
  "source": {
    "name": "The Business Times - Companies & Markets",
    "slug": "the-business-times-companies-markets",
    "url": "https://www.businesstimes.com.sg/international/global/ai-rout-after-us-midterms-hits-asia-hard-reviving-out-favour-chinese-and-indian-stocks"
  },
  "original_language": "en",
  "account": "The AI trade has suffered a significant rout following the US midterm elections, causing Asia to be hit hard. This shift has revived interest in previously out-of-favor Chinese and Indian stocks, along with companies expected to benefit from easing inflation and trade tensions. Aberdeen Investments favors markets driven by robust domestic growth, including India and Vietnam, and sees potential in Chinese technology firms. Hedge fund Lotus Asset Management is long Hong Kong equity futures, while Allianz Global Investors is exploring healthcare and consumer companies. The market fallout from the Democratic party's success in Congress has particularly affected Asia's biggest stocks, such as Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing Co., which serve as crucial suppliers to the global AI expansion. Rajeev De Mello, a global macro portfolio manager at Gama Asset Management, anticipates investors will diversify more broadly and reduce their concentration in the AI trade, which could benefit China and other markets with less demanding valuations. India may also gain, despite its dependence on imported energy, which remains a challenge. Hong Hao, the chief investment officer at Lotus, is betting against oil and petrochemical companies and investing in precious metals and Hong Kong equity futures. Hong Kong stocks experienced a 5.2% gain last week, the best performance since March 2025. Some global investors are interested in utilizing China's onshore market exposure as a diversifier from their AI-heavy portfolios. India's appeal has increased as oil prices fell due to hopes of a quicker end to the Iran war, easing a significant pressure point for the energy-importing economy. The market's reduced AI exposure is now considered an advantage. Logos Asset Management's chief investment officer, Charlie Hong, sold shares in SK Hynix, Samsung Electronics, Intel, and Lumentum Holdings and has since increased his investments in Indian companies, including new-age tech, financial firms, and contract drug manufacturers. India's Nifty 50 index gained 8.6% last week, its best week since 2021, as overseas investors returned in large numbers.",
  "summary": "But some investors say the sell-off may offer an opportunity to buy the dip",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Techmeme",
        "title": "Nasscom President Rajesh Nambiar warns AI could make it harder for fresh Indian engineering graduates to find jobs, urging an immediate CS curriculum overhaul (Sayan Chakraborty/Nikkei Asia)",
        "url": "https://urgent.news/2026/11/07/nasscom-president-rajesh-nambiar-warns-ai-could-make-it-harder-for",
        "published": "2026-11-07T11:40:01.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}