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Asian Stocks Slide as Nasdaq Enters Correction on AI Investment Fears
Asian stocks slide as Nasdaq enters correction, with Japan's Nikkei down almost 6% on AI investment fears.
Key points
- Japan's Nikkei slumped almost 6%, its worst drop since April 7 2025.
- Memory chip makers led the fallers, with SanDisk down 22% and Micron and AMD each losing 17%.
- Nvidia led the fallers on the Dow Jones Industrial Average, down over 9%.
Why it matters. Analysts pointed to policy uncertainty as Democrats are more critical of data centres, which could slow the rollout of AI investment.
Asian stock markets fell sharply on Tuesday after heavy losses on Wall Street, as investors dumped tech shares on fears about AI investment. Japan's Nikkei slumped almost 6%, South Korea's KOSPI fell 6.7% and Taiwan's TAIEX dropped 4.5%. The Nasdaq tech index slumped 5.5% and the Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, on Monday, with more than $3.2tn wiped off the US stock market. Christopher Forbes of CMC Markets called the action 'a bit of a disaster'.
Latest updates
Taiwan and South Korea Stocks Slide as AI Rout Deepens; Korea Halts Trading
Asian stock markets tied to the artificial intelligence boom fell sharply on the morning of November 6, following a tech sell-off on Wall Street. Investors fretted about possible delays in the construction of AI data centres. The Korea Exchange imposed a circuit breaker during morning trading to cool the selling after the KOSPI fell 8.7% at one point. Taiwan's stock market also suffered steep losses. Reuters reported the moves from Tokyo.
Asian Stocks Slide as Nasdaq Enters Correction on AI Investment Fears
Asian markets fell sharply after heavy losses on Wall Street. Investors sold technology stocks in Japan and South Korea. Fears that the Democratic Party's blue wave in the US midterm elections could slow the AI investment boom drove the sell-off. CNBC reported that the tech-heavy Nasdaq Composite entered correction territory after a sharp overnight sell-off. Analysts said the outcome of the election has unsettled investors, and markets in the region were widely reported to be in the red.
Asian Stocks Slide as US Chip Selloff Deepens and Oil Prices Fall
Asian stocks opened lower after a selloff in US chipmakers deepened, according to The Economic Times. The MSCI Asia Pacific gauge dropped 0.4 per cent, and South Korea's Kospi Index slid almost 3 per cent. In the United States, a gauge of chipmakers extended a three-day rout to 12 per cent. The Nasdaq 100 has sunk 10 per cent from its peak. The chip losses overshadowed a plunge in oil prices, which was driven by optimism over diplomatic progress toward ending the war in Iran. Markets in the region are closely tracking the technology sector's decline.