Asian chip stocks sank on Thursday 5 November as investors weighed what a Democratic-controlled US Congress could mean for spending on artificial intelligence, even as Hong Kong shares surged. South Korea's Kospi fell 5.28% to 5,383.80, according to the Associated Press.

Samsung Electronics dropped 7.6% and SK Hynix fell 9.4% in Seoul. In Japan, the Nikkei 225 fell 1.79%, with Tokyo Electron down 9.5%, Advantest down 15% and SoftBank Group down 6.9%. Taiwan's Taiex fell 3.2%.

Hong Kong moves the other way

Hong Kong's Hang Seng index rose 3.67% to 24,796.98, with Alibaba, Tencent, Xiaomi and Meituan rising strongly, while Australia's S&P/ASX 200 gained 2.6% to 9,065.10 and India's Sensex climbed 2.8%. China's Shanghai Composite edged up 0.1% to 3,689.91.

The selling was linked to worries that a Democratic-led Congress, which takes office in January, could bring greater scrutiny of AI infrastructure spending and data-centre development. The Philadelphia Semiconductor Index had already fallen 3.13% in US trading. Market moves are not investment advice.

Sources: Associated Press via StockVolt, Asian Chip Stocks Sink as Kospi Falls More Than 5% on Worries a Democratic Congress Could Curb AI Spending, 5 November 2026; LSE, Asia report: Tech stocks tumble in Tokyo and Seoul, but Hong Kong surges, 5 November 2026.