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Asian Stocks Tumble as AI Rout Hits Japan and South Korea
Asian stocks slump as AI rout hits Japan and South Korea, with Japan's Nikkei down almost 6% and KOSPI off 6.7%.
Key points
- Japan's Nikkei fell almost 6%, its worst drop since April 7 2025, South Korea's KOSPI lost 6.7%, and Taiwan's TAIEX dropped 4.5%.
- More than $3.2tn was wiped off the US stock market, with the Nasdaq down 5.5% and the Dow losing 3.44%.
- Analysts pointed to policy uncertainty as Democrats are more critical of data centres, which could slow the rollout of AI investment.
Why it matters. Analysts said policy uncertainty could slow the rollout of AI investment as Democrats grow more critical of data centres and the sector faces public opposition.
Japan's Nikkei slumped almost 6% and South Korea's KOSPI fell 6.7%, while Taiwan's TAIEX dropped 4.5%, as investors dumped tech stocks. The rout followed more than $3.2tn wiped off Wall Street, where the Nasdaq fell 5.5% and the Dow dropped 1,833.06 points, or 3.44%. SanDisk slumped 22%, Micron and AMD each lost 17%, and Nvidia fell over 9%, while CMC Markets' Christopher Forbes called it 'a bit of a disaster'.
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Asian Stocks Tumble as AI Rout Hits Japan and South Korea
Stock markets across Asia-Pacific fell sharply on Friday, November 6, following heavy losses on Wall Street overnight. Investors sold technology shares amid fears that the Democratic Party's blue wave in this week's midterm elections would undermine the AI investment boom. Japan and South Korea were among the hardest hit markets. The sell-off has unsettled markets worldwide. The Guardian's rolling coverage is tracking the market moves and their wider effects on the global economy.