World Shares Mostly Gain After Midterms11/05 04:51

   World shares were mostly higher Thursday, though heavy selling of artificial 
intelligence-related stocks offset gains for some markets following the U.S. 
midterm elections.

   (AP) -- World shares were mostly higher Thursday, though heavy selling of 
artificial intelligence-related stocks offset gains for some markets following 
the U.S. midterm elections.

   South Korea's Kospi sank more than 5% and the Nikkei 225 in Tokyo lost 
nearly 2%. Oil prices were mixed after the Dow industrials jumped more than 3% 
on Wednesday following the Republicans' loss of control of the U.S. Congress.

   In early European trading, the German DAX rose 0.6% to 26,598.03, while the 
CAC 40 in Paris surged 1.2% to 8,276.55. The United Kingdom's FTSE 100 gained 
1% to 10,935.08.

   The future for the S&P 500 was nearly unchanged, while that for the Dow 
Jones Industrial Average was up 0.4%. On Wednesday, the S&P 500 jumped 1.6%. 
The Dow surged more than 1,500 points, and the Nasdaq composite rose 1.4%.

   U.S. stocks usually climb following midterms, regardless of who wins. But 
technology shares have taken a hit as investors mull the potential impact on 
the boom in AI from a Congress led by Democratic Party lawmakers from January.

   The Kospi, which has gyrated through waves of selling and buying driven by 
the AI frenzy, tumbled 5.3% to 5,383.80.

   Shares in Samsung Electronics sank 7.6%, while memory chipmaker SK Hynix 
lost 9.4%.

   In Tokyo, the Nikkei 225 fell 1.8% to 61,077.90. OpenAI investor SoftBank 
Group shed 6.9%, while computer chipmaking equipment company Tokyo Electron 
skidded 9.5%. Testing equipment maker Advantest tumbled 15%.

   Taiwan's Taiex lost 3.2%.

   Asian markets less heavily exposed to the AI industry mostly climbed 
Thursday. Hong Kong's Hang Seng jumped 3.7% to 24,796.98. The Shanghai 
Composite index edged 0.1% higher, to 3,689.91.

   In Australia, the S&P/ASX 200 rose 2.6% to 9,065.10, while India's Sensex 
gained 2.8%.

   "Global equity markets mostly welcomed the strong win by Democrats, with 
European and Chinese markets surfing on hopes that the Democratic shift in 
Congress could increase pressure to undo some tariffs and restore stronger 
trade ties with the U.S.," Ipek Ozkardeskaya of Swissquote said in a commentary.

   However, she noted, with regard to AI, "The Democratic victory is expected 
to become a potential obstacle to an investment story already facing questions 
over massive spending, future returns and financing."

   On Wall Street, stocks of hospital owners and dollar stores serving 
low-income Americans helped lead the widespread rally on Wednesday following 
the U.S. nationwide losses for Republicans.

   Overall, the election may not matter much for the broad market in the long 
term. Prices for stocks depend more on where profits for companies and interest 
rates are heading than on who controls what in Washington. But investors 
generally prefer split control of Washington because it lessens the risk of 
transformative changes to the U.S. economy.

   But investors see risks ahead for U.S. President Donald Trump's social media 
company, the AI industry and businesses owned by Elon Musk, who donated heavily 
to Republicans.

   Trump Media & Technology Group was one of the market's bigger losers 
Wednesday, down 24.5%.

   Since briefly touching a peak of $175 five years ago, it's dropped to $4.49. 
Its main business is Truth Social, which is best known for Trump's postings on 
the platform.

   Musk's businesses also struggled. Tesla fell 3.3%, and SpaceX sank 3.8%. 
Musk, a former top Trump adviser, is among the possible targets for 
investigations by a Democratic-controlled Congress.

   A Democratic-led Congress could push Trump to pull back on the Iran war, and 
that hurt stocks of companies that make weapons and other equipment for the 
U.S. military. Lockheed Martin sank 6.9%; Northrop Grumman fell 4.5% and 
General Dynamics lost 2.6%.

   The possibility of pressure to pull back on the war also sent the price for 
a barrel of Brent crude oil, the international standard, plunging 8.7% to 
$94.62.

   Early Thursday, Brent crude rebounded, gaining 0.4% to $95.04 per barrel, 
while U.S. benchmark crude fell 0.3% to $87.86 per barrel.

   In other dealings early Thursday, the U.S. dollar slipped to 158.22 Japanese 
yen from 158.41 yen. The euro rose to $1.1241 from $1.1228.