Technology stocks in Hong Kong plummeted sharply, while other markets moved towards growth. This situation particularly emerged after the U.S. midterm elections, which resulted in a Democratic victory. These results drew attention especially due to rising discontent over the rapid expansion of data centers across the country and the high costs associated with them.
Concerns About the Future of the Technology Industry
Companies related to artificial intelligence came under pressure as investors expressed concerns about planned data center projects and renewed Democratic oversight in Congress. This industry is already under intense scrutiny from investors due to the massive costs of establishing new facilities, research, and chip production, and the profitability timeline of these companies is also in question.
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Market Condition Analysis
Charu Chanana, a market analyst at Saxo Markets, noted that this voting has accelerated the reevaluation of artificial intelligence that had already begun. She pointed out that while Democrats may have more oversight over the industry, this does not mean anti-AI policies. Artificial intelligence plays a crucial strategic role in U.S. competition, especially against China, and there is bipartisan interest in maintaining American leadership in this field.
In Asia, chipmakers were significantly affected, with stocks of companies like SK Hynix and Samsung dropping by over 7% and 5.5%, respectively. In Tokyo, Kioxia and Advantest fell by 9% and over 7%, respectively. Additionally, U.S. Nasdaq futures also declined by more than 1%.
While other markets moved towards growth, investors turned to financial and manufacturing sectors. Hong Kong and Shanghai continued to grow amid rising hopes for reduced trade tensions between the U.S. and China.
Oil prices also continued to decline, reaching their lowest level since early October following price drops on Wednesday. This decline in prices has been fueled by hopes for an end to the Iran war and a reduction in related inflationary pressures.
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