Asian markets trade mixed after Wall Street rally

November 05, 2026 (MLN): Asian markets opened mixed on Thursday, with Japan and Australia posting gains while South Korean equities traded lower, as investors assessed Wall Street's rally following the US midterm election results and a sharp decline in oil prices.

Japan’s Nikkei 225 gained 0.49%, while the broader Topix advanced more than 2%. Australia’s S&P/ASX 200 climbed 1.39%. In contrast, South Korea’s Kospi declined 2.33%, while the tech-heavy Kosdaq fell 1.24%, according to CNBC.

The mixed performance followed a strong rally on Wall Street, where investors responded to the Democrats securing control of both chambers of Congress in the US midterm elections, easing concerns over political uncertainty and raising expectations of legislative gridlock that could limit President Donald Trump’s policy agenda.

US equities advanced on Wednesday, supported by gains in consumer discretionary stocks. Walmart rose more than 3% during the regular trading session, leading gains among major retail stocks.

However, companies associated with artificial intelligence infrastructure faced selling pressure amid concerns over potential restrictions on data centre development following the election results. CoreWeave was among the stocks that declined as investors assessed the possible impact of regulatory challenges on the sector.

Market sentiment also received support from a more than 8% plunge in crude oil prices, amid expectations that Republican election losses could increase pressure on the Trump administration to end the war in Iran.

Investors will now turn their attention to weekly US jobless claims, while Friday's October nonfarm payrolls report is expected to provide further insight into the labour market.

On the corporate earnings front, reports from Tapestry, Kimberly-Clark and ConocoPhillips are due before the market opens, followed by Airbnb and Akamai later in the day.

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