Asian Markets Crash: KOSPI Plunges Nearly 9%, Nikkei Falls Over 5% Amid AI Stock Selloff
Asian stock markets plunged on Friday as heavy selling in artificial intelligence and semiconductor shares rattled investors. South Korea's KOSPI fell nearly 9%, triggering a trading halt, while Japan's Nikkei dropped over 5%. Concerns about AI valuations, future investment and potential US regulatory changes intensified market volatility across Asia
Representational Image
Asian stock markets suffered sharp losses on Friday, Nov 6, as a global selloff in artificial intelligence (AI) and semiconductor shares intensified following the US midterm elections.
South Korea's KOSPI plunged as much as 8.8% in early trading, triggering a 20-minute circuit breaker after breaching the exchange's threshold.
The benchmark later recovered partially but remained 4.97% lower at 5,116.17.
Japan's Nikkei 225 declined 5.27% to 57,858.61, while Hong Kong's Hang Seng slipped 0.77% to 24,607.21. The broader MSCI Asia Pacific Index fell approximately 3%.
ALSO READ
South Korean technology giants faced intense selling pressure as investors reassessed the outlook for AI infrastructure spending.
Samsung Electronics shares plunged 10%, while SK Hynix dropped 13% in early trading. Both stocks faced temporary trading restrictions.
The decline spread across regional technology companies, with Japan's Kioxia falling 14%, Taiwan Semiconductor Manufacturing Company (TSMC) losing 8.5% and SoftBank Group declining 11%.
Other sectors also weakened. Hyundai Motor dropped 6.9%, while Kia and LG Energy Solution each lost 4%.
South Korean equities have been particularly exposed to changes in AI investment sentiment because semiconductor companies contributed significantly to the market's earlier rally.
The selloff followed reported Democratic gains in the US midterm elections, which heightened investor concerns about possible tighter AI regulations and restrictions on data centre development.
Investors also questioned whether substantial spending on AI infrastructure would deliver adequate financial returns.
Wall Street had suffered heavy losses in the preceding session.
The Nasdaq Composite declined 5.52%, entering correction territory after falling more than 10% from its October peak.
The S&P 500 dropped 4.36%, reportedly erasing approximately $3 trillion in market value, while the Dow Jones Industrial Average fell 3.44%.
The latest market turbulence reflects growing uncertainty surrounding technology valuations, semiconductor demand and the future pace of global AI investment.
Level up your brain the fun way. Play daily games and quizzes on FPJ Smart!
RECENT STORIES
-
-
-
-
-