Key facts
- Brent crude fell nearly 9% overnight to below $100 a barrel and was last quoted at $93.50.
- Brent has dropped about 20% so far in the week, according to the report.
- South Korea's KOSPI slid 4% and Taiwan's benchmark index fell 1.8%.
- The 10-year US Treasury yield fell 6 bps overnight to 4.87%, per the report.
- The dollar weakened to a one-month low of $1.1273 per euro.
- Solar supply chain stocks gained the most on expected Democratic support for renewables.
Oil, chip stocks and the dollar came under pressure in Asia on November 5 after US voters handed the Democrats a series of midterm election wins, a result that raised expectations of an end to the US-Iran war, Reuters reported.
Brent crude futures fell nearly 9% overnight to below $100 a barrel and were last quoted at $93.50 in Asian morning trade. Brent has dropped about 20% so far in the week, which the report said would be the largest weekly fall since a week in April 2020 if sustained through Friday's close.
The S&P 500 closed 1.6% higher and European shares reached a two-month high. Solar supply chain stocks gained the most on expectations Democrats will boost support for renewables, while data centre companies and their equipment suppliers across Asia fell on expectations of tougher regulation.
South Korea's KOSPI slid 4%, Taiwan's benchmark index fell 1.8% and the Nikkei fell 0.5%. The yield on the 10-year US Treasury note fell 6 basis points overnight and a further basis point in early Tokyo trade to 4.87%, while the 2-year yield fell about 2 basis points to 4.56%. The dollar weakened to $1.1273 per euro.
Chris Weston, head of research at brokerage Pepperstone in Melbourne, said the scale of the Democratic victory caught markets off guard. Trump acknowledged on Wednesday that the war contributed to the Republican defeat, and JD Vance said on X that the party lost because of the war.
The report said most analysts do not expect the election result to dent demand for artificial intelligence, data centres or computer chips, though they expect at least a temporary slowdown.