{"id":74175,"date":"2026-11-04T23:08:27","date_gmt":"2026-11-05T03:08:27","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-as-us-midterm-results-spark-hopes-for-geopolitical-de-escalation\/74175\/"},"modified":"2026-11-04T23:08:27","modified_gmt":"2026-11-05T03:08:27","slug":"global-markets-surge-as-us-midterm-results-spark-hopes-for-geopolitical-de-escalation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-surge-as-us-midterm-results-spark-hopes-for-geopolitical-de-escalation\/74175\/","title":{"rendered":"Global Markets Surge as US Midterm Results Spark Hopes for Geopolitical De-escalation"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Hong Kong\u2019s Hang Seng Index (<a href=\"\/stock\/HSI\">HSI<\/a>) surged over 3%<\/strong>, led by a <strong>5.35% rally in the Tech Index<\/strong>, as investors cheered a potential shift in US foreign policy following a Democratic sweep in the midterm elections.<\/li>\n<li><strong>Brent crude futures plunged nearly 9% overnight<\/strong>, falling below <strong>$100 per barrel<\/strong> for the first time since early October, on growing expectations of a resolution to the US-Iran conflict.<\/li>\n<li><strong>The Euro (<a href=\"\/stock\/EURUSD\">EURUSD<\/a>) rose 0.25% to $1.1257<\/strong>, hitting a one-month high as US Treasury yields declined and the US Dollar weakened following the election results.<\/li>\n<li><strong>Data center and semiconductor stocks faced significant pressure<\/strong>, with South Korea\u2019s <strong>KOSPI sliding 4%<\/strong> and Taiwan\u2019s benchmark falling <strong>1.8%<\/strong> amid fears of tougher AI infrastructure regulations.<\/li>\n<li><strong>China\u2019s coking coal futures rallied over 3%<\/strong> on the Dalian Commodity Exchange, driven by supply disruptions and seasonal heating demand.<\/li>\n<\/ul>\n<h2>Asian Markets Rally on US Political Shift<\/h2>\n<p>Asian equities saw a broad-based rally on Thursday as the clear outcome of the US midterm elections reduced market uncertainty. The <strong>Hang Seng Index (<a href=\"\/stock\/HSI\">HSI<\/a>)<\/strong> jumped <strong>2.9% to 24,618<\/strong>, reaching a five-week high, while the <strong>Hang Seng TECH Index<\/strong> soared over <strong>5%<\/strong>. Major tech heavyweights led the charge, with Meituan (<a href=\"\/stock\/03690\">03690<\/a>) and Xiaomi (<a href=\"\/stock\/01810\">01810<\/a>) both gaining approximately <strong>8%<\/strong>.<\/p>\n<p>The market sentiment was bolstered by the Democratic victory in both chambers of Congress, which investors interpret as a check on the current administration&#39;s military options in the Middle East. <em>This political shift has significantly lowered the &quot;war premium&quot; previously baked into global asset prices.<\/em> In Malaysia, the benchmark index rose <strong>1.3%<\/strong>, hitting its highest level since October 6, supported by the improved global risk appetite.<\/p>\n<h2>Energy and AI Infrastructure Under Pressure<\/h2>\n<p>In contrast to the broader market rally, the energy and technology infrastructure sectors faced a sharp sell-off. <strong>Brent crude<\/strong> fell to near <strong>$94 a barrel<\/strong>, extending a weekly drop that could be the largest since 2020. Market participants are increasingly pricing in a &quot;peace dividend,&quot; as a potential de-escalation in the Iran conflict could restore global oil flows to a surplus of <strong>1.4 million barrels per day<\/strong>.<\/p>\n<p>Data center operators and equipment suppliers also retreated following Democratic wins in key hubs like Texas and Georgia. Investors are repositioning for <strong>tougher scrutiny of AI infrastructure spending<\/strong> and potential moratoriums on new construction. Analysts at Citrini Research noted that the market may be &quot;calling the top&quot; on AI infrastructure spending estimates, shifting focus toward margin capture and capital efficiency rather than raw expansion.<\/p>\n<h2>Currencies and Commodities Adjust to New Outlook<\/h2>\n<p>The US Dollar weakened across the board, allowing the <strong>Euro (<a href=\"\/stock\/EURUSD\">EURUSD<\/a>)<\/strong> to stabilize above <strong>$1.1250<\/strong>. <strong>Sterling (<a href=\"\/stock\/GBPUSD\">GBPUSD<\/a>)<\/strong> made modest gains, trading near <strong>1.3485<\/strong> ahead of the <strong>Bank of England&#39;s<\/strong> interest rate decision. The BoE is widely expected to hike rates by <strong>25 basis points to 4.00%<\/strong>, though the focus remains on the vote split and future guidance.<\/p>\n<p>In the commodities space, <strong>China&#39;s coking coal futures<\/strong> rose more than <strong>3%<\/strong> to <strong>1,391.5 yuan<\/strong>, supported by tighter domestic production and upcoming winter heating needs. Meanwhile, the <strong>Taiwan Dollar<\/strong> hit a low of <strong>32.963<\/strong> against the greenback, its weakest level since early 2025, as the sell-off in regional semiconductor giants like Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) and SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>) weighed on the currency.<\/p>\n<h2>Legal and Fiscal Developments in Greater China<\/h2>\n<p>In Hong Kong, a High Court judge praised pro-democracy activist <strong>Joshua Wong<\/strong> for providing &quot;evidence of remorse and rehabilitation&quot; during a sentencing hearing for national security charges. Wong, who pleaded guilty to conspiracy to collude with foreign forces, faces a potential life sentence, though his legal team is arguing for a reduced term of three to ten years based on his cooperation and time already served.<\/p>\n<p>On the fiscal front, <strong>China\u2019s Finance Ministry<\/strong> successfully auctioned one-month deposits at a <strong>1.42% yield<\/strong>. This move is part of a broader &quot;proactive fiscal policy&quot; aimed at expanding domestic demand and supporting the real economy. The ministry has pledged to accelerate the issuance of government bonds to maintain a <strong>4.7% GDP growth<\/strong> target for the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Hong Kong\u2019s Hang Seng Index (HSI) surged over 3%, led by a 5.35% rally in the Tech Index, 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