Business · Markets · 3 hrs ago
Asian stocks rise as oil falls after US midterm elections
Asian stocks mostly rose on Thursday, following gains in US markets after the US midterm elections.
Democrats won control of both chambers of Congress, and investors judged the results could limit President Donald Trump’s ability to increase the federal deficit.
Oil prices fell sharply after Senate Minority Leader Chuck Schumer pledged to end the Middle East war, while investors anticipated new negotiations involving Iran.
Lower oil prices helped ease concerns about inflation, and US government bonds rose as investors reduced bets on Federal Reserve rate hikes.
South Korea’s Kospi fell 2.7%, as investors worried about data-center development and losses in US chip stocks, though other major Asian markets rose.
Investors are watching whether the election results, oil prices and corporate earnings support continued market gains; no specific next policy step is stated.
Asian stocks rose after gains in US equities following a Democratic sweep in the US midterm elections.
The MSCI Asia Pacific Index gained 0.3%, with benchmark indexes rising in Japan and Australia.
South Korea’s Kospi fell 2.7%, amid concerns about data-center development and losses in US chip stocks.
Brent crude fell more than 8% on Wednesday to below $95 a barrel, amid speculation that the conflict with Iran could end sooner.
Treasuries gained and the dollar weakened as investors responded to lower oil prices and the election result.
- Who
- Asian investors and financial markets. Democrats won control of both chambers of the US Congress.
- What
- Asian stocks rose and oil prices fell after the US midterm elections.
- When
- Early Thursday, after the elections and Wednesday’s market moves.
- Where
- Asian markets, following gains in US equities.
- Why
- The Democratic sweep prompted speculation about an earlier end to the conflict with Iran and pushed oil lower. Lower oil prices also raised hopes of reduced inflation.
This story does not have two clearly opposing sides.
Brent crude slumped more than 8% to below $95 a barrel after a pledge from Senate Minority Leader Chuck Schumer to end the Middle East war.
The S&P 500 rose 1.6%, its biggest gain in three months, and the Nasdaq 100 climbed 0.9%.
US oil held its declines as Asian stocks advanced and the MSCI Asia Pacific Index rose 0.3%.
- MSCI Asia Pacific Index
- Rose 0.3%
- Kospi Index
- Fell 2.7%
- Brent crude
- Fell more than 8% to below $95 a barrel
- S&P 500
- Rose 1.6%
- Nasdaq 100
- Rose 0.9%
What people are saying
The stock market is now celebrating congressional gridlock, President Trump’s willingness to work with the new Congress, and the fact that the Trump administration may not immediately attack Iran now that new negotiations are anticipated.
Greater congressional oversight will not necessarily derail the AI investment cycle as underlying demand is still solid
Yes, potential worries over AI regulation are high, but the reality is markets hate uncertainty and now with the election out of the way, we are seeing buyers step in across the board.
That supports our base case of giving the bull market the benefit of the doubt, but earnings, the economy, interest rates, valuations, and market trends remain more important to our view