Week in review

• Democrats won control of Congress in U.S. midterm elections
• Reserve Bank of Australia increased the cash rate from 4.60% to 4.85%
• China RatingDog Manufacturing PMI decreased to 52.0 in November

Week ahead

• China October inflation rate, exports, and imports
• U.S. October inflation rate and PPI
• Japan September household spending

Thought of the week

Asian technology shares came under pressure after the U.S. midterm elections, with Korean memory producers particularly weak as investors considered the prospect of tighter oversight of AI data centers. Foreign selling amplified the declines, although some markets recovered from their initial lows. The policy concern matters because restrictions on data-center development could temper expectations for chip demand at a time when investors are questioning the scale and returns of AI spending. Still, existing investment plans may continue while the scope and timing of any new oversight remain uncertain. Recent record profits and expectations of prolonged memory shortages also counter fears that demand is already fading. Over the coming years, the pace of AI adoption, the ability to turn usage into revenue, and the sustainability of spending are likely to matter more to markets than any single policy proposal.

APAC ex-Japan AI-related industry performance

Price return

Source: FactSet, MSCI, J.P. Morgan Asset Management. AI refers to artificial intelligence. Hyperscalers is a market-weighted composite of Alibaba, Baidu and Tencent. The remaining categories are based on GICS Industries: Semis = Semiconductors & Semiconductor Equipment (Info. Tech.); Hardware = market-weighted composite of Communications Equipment (Info. Tech.), Electronic Equipment Instruments & Components (Info. Tech.) and Technology Hardware Storage & Peripherals (Info. Tech.). The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. J.P. Morgan Asset Management may or may not hold positions on behalf of its clients in any or all of the aforementioned securities. Past performance is no guarantee of future results. Data reflect most recently available as of 04/11/2026.

All returns in local currency unless otherwise stated.

Equity price levels and returns: Levels are prices and returns represent total returns for stated period.

Bond yields and returns: Yields are yield to maturity for government bonds and yield to worst for corporate bonds. All returns represent total returns. AusBond Comp is the AusBond Composite 0+ Yr, AusBond IG is the AusBond Credit 0+ Yr both provided by Bloomberg.

Currencies: All cross rates are against the Australian dollar. An appreciation of the foreign currency against the Australian dollar would be positive and a depreciation of the foreign currency against the Australian dollar would be negative.

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