Data center stocks fell across Asia on Thursday as investors assessed the potential impact of US midterm results on regulation and construction. Reuters reported that shares in data center companies and their equipment suppliers declined amid expectations of tighter oversight.

Brent crude futures fell nearly 9% overnight, dropping below $100 a barrel. Prices were down about 20% for the week. The decline in energy prices supported a rally in bonds, lowered yields and helped lift broader stock markets.

The S&P 500 closed 1.6% higher, while European shares reached a two-month high. Solar supply chain stocks also rose, as investors anticipated increased support for renewable energy.

In Asia, data center stocks and related equipment suppliers weakened. South Korea’s KOSPI fell 4%, Taiwan’s benchmark index declined 1.8%, and Japan’s Nikkei slipped 0.5%, with technology equipment suppliers weighing on the index.

Some Democratic candidates who opposed data center construction moratoriums won races in Texas and Georgia. The results added to investor expectations of tougher regulation and a possible temporary slowdown in data center and AI activity. However, most analysts cited by Reuters expect demand for AI, data centers and computer chips to continue.

“The magnitude of the victory is what has caught markets off guard,” said Chris Weston, head of research at brokerage Pepperstone in Melbourne.

Oil was testing overnight lows at $93.50 in Asia trading. Lower energy prices could ease inflation pressure and reduce the likelihood of future interest rate hikes. The 10-year US Treasury yield fell to 4.87%, while the two-year yield declined to 4.56%.

Investors will continue to watch how policy expectations affect data center stocks, equipment suppliers and plans for new construction.

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