US midterm election results favor Democrats, Asian tech stocks decline

In early trading on Wednesday, Asian tech stocks broadly declined. Preliminary US midterm election results show Democrats performing strongly, further reinforcing market bets on a sweeping Democratic victory. Investors worry this could slow AI investment flowing into Asia's tech-intensive markets.

Chris Weston, Head of Research at Pepperstone, said: "The final margin of a Democratic victory, or an unexpected Republican win of the Senate, could both trigger large-scale position adjustments in the market." US futures linked to the Nasdaq index fell further, dropping about 1.5% on the Chicago Mercantile Exchange (CME).