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High Impact

Kopsi, Taiwan, other Asian stocks tumble after US midterm elections signal Democratic victory. What’s the connection?

📅
🏷Markets
📰via Economic Times
✍️Edited by Luís Barata

Kospi, Taiwan's benchmark index, and other Asian equities fell sharply after early US midterm results pointed to a Democratic win, with the Economic Times asking what links the US vote to regional selloffs. The primary transmission channel runs through trade policy expectations: a Democratic-controlled Congress is generally seen as less likely to push the broad tariff escalation that markets had priced in under a Republican administration, yet the uncertainty itself and any shift in the expected path of US-China tensions can weigh on export-dependent economies. Taiwan's semiconductor-heavy index and South Korea's chip and electronics manufacturers are most exposed, given their sensitivity to US demand, tech supply chains, and China-linked trade flows. Traders should watch the final certified midterm results and any early signals on tariff and export-control legislation, alongside the next US Consumer Price Index release, which will shape Federal Reserve rate expectations and the dollar's direction against Asian currencies.

Source: Originally reported by Economic Times at November 04, 2026. Summary and market context by Trading News Terminal editorial.

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