“Blue Wave” Triggers Rotation Across Asian Stock Sectors, Chip Stocks Slump while Auto Stocks Rally

Odaily reports: Democrats have swept both chambers of the US Congress, driving sector rotation in Asian stock markets. On Thursday, memory chip giant SK Hynix fell over 9%, and Samsung Electronics dropped 7%, dragging South Korea's KOSPI index down more than 5%.

Meanwhile, automakers such as Toyota Motor and Honda Motor each rose about 5%, pushing Japan's Topix index up 1%. Other consumer companies, including Uniqlo parent Fast Retailing, also posted gains. As Democrats leveraged voters' concerns about artificial intelligence to win support in the midterm elections, market worries are mounting over potential delays in data center construction.

Beyond adopting defensive investment strategies amid the tech stock selloff, investors are also piling into auto stocks, betting that carmakers could benefit if US President Trump eases tariff policies. Tim Waterer, chief market analyst at KCM Trade, said: "We are seeing continued capital outflows from the chipmaker sector, and the rotation trend is very clear. The market is punishing the areas most vulnerable to potential regulatory headwinds, and the semiconductor industry is one of them."