Asian stock investors eye US midterm elections as AI markets hang in balance

Asian stock investors are watching the US midterm elections as a potential wildcard for the region's AI-heavy markets, with a Democratic sweep of Congress likely to bring greater scrutiny of the AI industry and data-center buildout. A Republican hold would offer more policy continuity, potentially benefiting Korean and Taiwanese chipmakers. South Korea and Taiwan supply critical semiconductors for the US data-center boom, leaving them vulnerable if Democrats intensify oversight of AI costs and trade policy. Measures raising infrastructure or power expenses could add to investor concerns over debt-fueled AI spending, though global demand for AI computing is expected to remain durable regardless of the outcome. Chinese clean-energy firms could benefit from a stronger Democratic showing, while Japanese defense companies may fare better under Republican control. A divided government could restrain fiscal expansion and lower US bond yields, indirectly supporting Asian equities, though trade tensions may escalate as the White House relies more on executive powers.