Asia report: Markets mixed as investors eye US midterms

(Sharecast News) - Asian stock markets were mixed on Wednesday as results from US midterm elections raised fresh concerns about AI-related spending, regulation and the direction of US fiscal policy.

As of 1005 GMT, Japan's Nikkei 225 was down 1.42% at 62,188.63, while the Topix shed 0.89% to 3,895.38, the Kospi was up 0.62% at 5,683.80 and the small-cap Kosdaq was 1.50% firmer at 714.95.

Hong Kong's Hang Seng index was 1.67% higher at 23,919.50, while Mainland China's CSI 300 advaced 2.31% to 4,101.34 and Australia's ASX dipped 0.59% to 8,834.50. Singapore's Straits Times Index was 0.01% lower at 5,268.63.

In addition to the midterm results, which saw Democrats taking control of both the House and Senate, investors were also monitoring reports that Washington and Tehran were reviewing new proposals aimed at advancing peace talks, leaving oil prices volatile as traders weighed the prospect of easing supply disruptions against the risk of renewed tensions.

In Asian corporate news, shares in United Overseas Bank fell after the Singapore lender reported third-quarter net profit of S$1.25bn, missing analysts' expectations of SGD $1.35bn (£1bn) and warning that net interest margins would come under further pressure as funding costs remain elevated.

On the macro front, the People's Bank of China said applications for its stock-purchase lending programme had exceeded RMB 200bn (£22.18bn), as authorities stepped up efforts to support capital markets. The central bank also cut the re-lending rate for share buybacks and acquisitions by 25 basis points to 1%, a move aimed at accelerating loan issuance and boosting market capitalisation among listed companies.

Elsewhere, China's Caixin services purchasing managers' index eased to 50.8 in October from 51.6 a month earlier, indicating the slowest pace of expansion in three months.

Reporting by Iain Gilbert at Sharecast.com