Morning brief: Republicans win Tennessee House seat; Asia markets steady

In a busy day for global political and economic developments, US electoral shifts, a rebound in Asian markets, mixed Australian growth data, and a major semiconductor acquisition offer a broad snapshot of the forces shaping investor sentiment.

Here is a roundup of the key events unfolded on Wednesday morning.

Republicans secure Tennessee House seat

Voters in Tennessee elected Republican Matt Van Epps to fill a vacant US House seat, expanding the narrow Republican majority ahead of next year’s midterm elections.

Van Epps, a former state official, defeated Democrat Aftyn Behn in a Middle Tennessee district that includes parts of Nashville, according to projections by major US media outlets.

The seat was previously held by Republican Mark Green, who resigned in July.

While Trump carried the district by 22 points in 2024, recent polling had suggested a competitive race.

Van Epps credited President Donald Trump for his “unwavering support,” saying he plans to align closely with him in Congress.

The contest drew significant spending from both parties, as Democrats had outperformed expectations in four prior special elections this year.

Several upcoming races — including in Georgia, Texas, and New Jersey — may further influence the House’s tight 219-213 partisan split.

Asian markets rebound as global bond selloff slows

Asian equities steadied on Wednesday following a volatile start to the week.

Investors found relief as a sharp selloff in global bond markets, triggered by expectations of a potential rate hike in Japan, began to ease.

MSCI’s broad Asia-Pacific ex-Japan index fell 0.09%, while Japan’s Nikkei gained 1.5%.

Cryptocurrency markets also rebounded, with Bitcoin climbing back above $93,000.

US futures pointed modestly higher.

Japanese government bond yields, however, remained under pressure, with the five-year yield hitting its highest level since 2008.

Analysts said shifting expectations for US monetary policy — including a likely Fed rate cut next week and speculation that Kevin Hassett is the frontrunner to replace Jerome Powell — kept the dollar soft.

The euro and sterling edged higher, while the yen strengthened slightly.

Oil prices were largely flat, while gold rose 0.08% to $4,209.16 an ounce.

India’s equity benchmarks declined on Wednesday, extending a four-session profit-taking streak after hitting record highs.

Continued foreign outflows also weighed on the rupee, pushing it to a fresh all-time low.

The Nifty 50 fell 0.52% to 25,897.05.

Australia’s GDP misses forecasts but shows momentum

Australia’s economy grew 2.1% year-on-year in the third quarter, slightly below expectations but still marking its fastest expansion in two years.

Quarterly growth came in at 0.4%, short of the 0.7% forecast.

Economists said the softer headline figure masked stronger domestic momentum.

Excluding inventories and trade impacts, domestic activity surged 1.2% — the fastest in more than two years.

Household consumption rose, supported by spending on insurance, utilities, rent, healthcare, and food, while private investment increased sharply, driven by spending on machinery, equipment, and data centers.

Inflation, however, remains a concern.

Prices rose 3.8% year-on-year in October, keeping pressure on the Reserve Bank of Australia.

While the central bank is expected to hold rates at 3.6% next week, analysts said a future hike cannot be ruled out.

Marvell Technology to acquire Celestial AI in major AI bet

Marvell Technology shares surged more than 15% in late trading after the chipmaker announced a deal to acquire Celestial AI for at least $3.25 billion, with potential payouts bringing the total value to $5.5 billion.

The company also issued upbeat guidance tied to its custom chip business.

Celestial AI, founded in 2020, develops optical interconnect technology known as “photonic fabric,” designed to move data within AI systems more efficiently.

The startup is backed by major investors, including Fidelity, BlackRock, AMD, and Intel CEO Lip-Bu Tan.

Marvell expects the acquisition — set to close in early 2026 — to strengthen its AI networking capabilities.

The company also forecast 20% growth in custom chip revenue next year and said fiscal-year revenue could reach $10 billion.

For the fourth quarter, Marvell guided to $2.2 billion in revenue, 59% adjusted gross margin, and earnings of 79 cents per share.