Editor's Choice: What the US midterms mean for Asia

Akito Tanaka shares his weekly reflections and recommendations Historically, the party of the sitting president tends to lose seats in the midterms, which take place roughly halfway into a president's four-year term. (Nikkei montage/Source photos by Yuki Nakao and Reuters) Hello from Tokyo. We are now just four days away from the U.S. midterm elections. With about one-third of the Senate and every House of Representatives seat up for grabs, the outcome could significantly shape President Donald Trump's behavior in the second half of his term. Republicans currently control both chambers of Congress, but pre-election forecasts suggest Democrats could retake the House, and the Senate is shaping up to be a tight race. The results will have ramifications far beyond U.S. politics, affecting the global economy and geopolitics. While media around the world will be watching the midterms closely, Nikkei Asia will focus on what the results mean for Asia. On Tuesday, we published an explainer, "5 things to know about the midterms and what they mean for Asia." We havemore related storiesin the works; and on election day, please stay tuned to our live blog for the latest developments. For American voters, the rising cost of living, from fuel and food to housing and consumer goods, remains the biggest concern. But another issue with potentially significant implications for Asian economies has rapidly gained attention in this election: the backlash against data centers. The race is expected to be particularly tight in Ohio, the home state of Vice President JD Vance, where the Democratic Senate candidate has made data centers' rising electricity costs a major issue in the campaign against the Republican incumbent. Many advanced semiconductors and pieces of equipment that fill these data centers are produced in Asia, particularly in Taiwan and South Korea. If the midterm results strengthen the backlash against data center construction in the U.S., major technology companies in Taiwan and South Korea could feel the consequences, potentially weighing on earnings and share prices. Nikkei Asia is closely watching this emerging issue, andwe have been reporting on itfrom Ohio. Two weeks after Americans go to the polls, leaders from the U.S., China and other Asia-Pacific economies are scheduled to gather in Shenzhen for the APEC summit. Coming soon after the midterm results, the gathering will offer an important indication of how Trump will approach diplomacy after receiving the verdict of voters at home. The ASEAN summit in Manila will also be held around the same time. With just over two months left in 2026 and major events still ahead, the Nikkei Asia newsroom is heading into one of the busiest stretches of the year. We hope you'll follow our reporting as these stories unfold. 1. U.S.-China tensions that led to trade restrictions and a "China+1" diversification strategy for the tech supply chain have been trumped by pressures created by the artificial intelligence buildout. Facing soaring prices and shortages of components, PC makers such as HP and Asus aremoving some production back to China. Our award-winning reportersCheng Ting-Fang and Lauly Liexposed the strategy reversal and revealed a new generation of Chinese contract manufacturers benefiting from the move. 2. Southeast Asians arescaling back their weddingsas the economic pain inflicted by this year's global energy crisis and rising interest rates takes its toll. Businesses from wedding planners and caterers to tailors and florists are suffering as couples increasingly opt for "micro and intimate" celebrations and adopt innovative strategies to save money. 3. Under relentless pressure from Chinese competitors, the storied German auto industry isseeking salvation in the defense sector. Companies including Volkswagen are increasingly redirecting manufacturing capacity and employees toward arms production in the hope of saving jobs, at a time when the European Union is racing to rebalance trade with China while also shoring up security against Russia. Sign up for the weeklyEditor-in-chief's picks newsletter here