On Tuesday (3 November, 9:37 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific exhibited a varied performance as investors assessed weakness in U.S. technology shares, falling oil prices amid signs of diplomatic progress in the Middle East, and the upcoming U.S. midterm elections.
Asian equities came under pressure as losses among U.S. chipmakers intensified, reflecting persistent concerns over AI investment spending and elevated technology valuations. The decline continued despite a sharp drop in crude prices, as easing geopolitical tensions reduced concerns over energy supply disruptions and inflation without restoring demand for technology stocks.
Hopes for a diplomatic resolution to the Iran conflict gained traction after Iranian President Masoud Pezeshkian said his government had received greater authority from the country’s supreme leader to pursue peace negotiations. U.S. President Donald Trump also indicated that discussions were progressing, suggesting that expectations of a potential agreement had contributed to lower oil prices.
On Wall Street, technology stocks faced additional pressure following several corporate developments. Apple shares declined 2% in extended trading after its margin outlook disappointed investors and the fiscal fourth-quarter iPad sales missed estimates. Marvell Technology and Lumentum fell approximately 12% and 18%, respectively, following the announcement of their $115 billion acquisition deal. Oracle also dropped 8% after outlining plans to raise $20 billion through stock and bond offerings to finance its AI expansion.
Investors are also positioning for Tuesday’s U.S. midterm elections, with prediction market participants assigning nearly 75% odds to Democrats gaining control of the Senate. JPMorgan warned that a Democratic victory in both chambers could trigger further selling in AI-related stocks, while the election outcome could influence congressional oversight of industries including defense, technology, and healthcare.
Meanwhile, the U.S. economic calendar presents another potential market catalyst. October manufacturing activity strengthened, supported by the largest increase in production in nearly five years. Investors are now awaiting September job openings data on Tuesday, weekly jobless claims on Thursday, and October nonfarm payrolls on Friday.
Notably, markets in Japan were closed for a holiday.
South Korea’s KOSPI slumped by 2.53% to 5,711.13, and Australia’s ASX 200 remained relatively unchanged at 8,856.80.
Shanghai’s SSEC fell by 0.56% to 3,617.66. Shenzhen’s SZI rose by 0.64% to 11,080.99, and Hong Kong’s HSI advanced by 0.51% to 23,511.82.
The U.S. stock markets were mixed on Monday as the Dow Jones Industrial Average (DJIA) grew by 0.41% to 51,983.98. NASDAQ declined by 1.07% to 25,164.36, and the S&P 500 contracted by 0.51% to 7,541.40. VIX increased by 8.91% to 21.15.
As for commodities, oil prices settled lower on Monday as diplomatic engagement between Iranian and Qatari officials raised expectations of progress toward ending the U.S.-Iran conflict. Brent crude futures dropped $8.66, or 7.63%, to settle at $104.77 per barrel, while U.S. West Texas Intermediate crude fell $7.66, or 7.36%, to close at $96.46 per barrel.
This morning, Brent futures slid 4 cents, or 0.04%, to $104.73 per barrel, and WTI futures added 9 cents, or 0.09%, to $96.55 per barrel.
Meanwhile, gold futures lost 0.32% to $3,956.70 per troy ounce.
