Markets
Kospi Halts Trading and Nikkei Falls More Than 6% as Wall Street's AI Selloff Spreads to Asia
Image: PIX1861 via Pixabay
Chip and AI-linked shares in Seoul, Tokyo and Taipei were hit hard Friday, while Nasdaq futures pointed to a partial rebound.
By Emma Cruz ·
Stock markets across Asia fell sharply on Friday as the rout in artificial-intelligence and semiconductor shares that rattled Wall Street spread overseas. Japan's Nikkei 225 dropped more than 6% after trading opened, the Associated Press reported, following what it described as a widespread selloff of AI-related stocks in the United States [1].
South Korea's Kospi was hit hardest in the early going. Reuters, as carried by Fox Business, reported that the index fell more than 8% before a temporary trading halt triggered by its circuit-breaker mechanism, then was down about 7% after trading resumed. Taiwan's benchmark index also fell more than 8% in the same report [2]. Dow Jones Newswires later reported that the Kospi closed down more than 6%, its worst day since 2025, after a 20-minute halt [3].
Large chip and technology names led the declines. According to Reuters, SK Hynix fell 11.7%, SoftBank Group about 11%, Samsung Electronics nearly 10% and Taiwan Semiconductor Manufacturing 8.5% [2]. Dow Jones said Hong Kong and Shanghai also declined and that the Nikkei was approaching correction territory, generally defined as a drop of 10% from a recent high [3].
The trigger was Thursday's rout in New York. The Dow Jones Industrial Average lost 1,833 points, or 3.44%, the S&P 500 fell 4.36% and the Nasdaq Composite dropped 5.52%, pushing it into correction territory, Reuters reported [2]. The Associated Press noted that the S&P 500's decline of about 4.4% was its worst day since April 2025, when the "Liberation Day" tariffs shook global markets [1]. Dow Jones estimated that the Nasdaq lost about $2.5 trillion in value on Thursday [3].
Investors have been weighing whether a Democratic-controlled Congress could bring tighter scrutiny of artificial intelligence and the data center buildout that has driven chip stocks. Reuters reported that President Donald Trump blamed the midterm election results for the US selloff [2].
Europe was weaker but less severe. As of 5:15 a.m. ET, the Stoxx 600 was down about 1%, with all major continental indexes lower, while ASML, Europe's most valuable company, was up 3.6% in premarket trading, Dow Jones reported [3]. US futures pointed to a split open at that time: Nasdaq futures were up about 1.8% and S&P 500 futures up 0.6%, while Dow futures were down about 0.55% [3].
Other markets showed a cautious tone. The 10-year Treasury yield was near 4.84%, slightly above its recent near two-month lows, and the 30-year yield was around 5.26%. The dollar rose, gold slipped below $4,100 an ounce and bitcoin traded above $76,500, according to Dow Jones [3].
What to watch next: whether the bounce in Nasdaq futures survives the US open, how Korean and Taiwanese chip shares trade once the initial panic fades, and the October jobs report due at 8:30 a.m. ET, which Dow Jones said could shift expectations for a December Federal Reserve rate hike if it comes in strong [3]. Any signal from Washington on how AI oversight or data center policy might actually be handled could also steer sentiment in the sector.
Sources:
[1] Associated Press, "Japan's Nikkei falls more than 6% as Asian benchmarks tumble after Wall Street drop", November 5, 2026. https://www.wsls.com/business/2026/11/06/japans-stock-benchmark-nikkei-tumbles-more-than-6-after-trading-opens/
[2] Fox Business (citing Reuters), "Asian stock markets plunge as Japan Nikkei, South Korea Kospi and Taiwan stocks fall", November 6, 2026. https://www.foxbusiness.com/markets/asian-stock-markets-plunge-japan-nikkei-south-korea-kospi-taiwan-stocks-fall
[3] Dow Jones Newswires via MarketScreener, "Nasdaq Futures Rally After Asian AI Rout as Investors Brace for Jobs Day -- Update", November 6, 2026. https://www.marketscreener.com/news/nasdaq-futures-rally-after-asian-ai-rout-as-investors-brace-for-jobs-day-update-ce785fddd088ff20
This article was produced with AI assistance. It is for informational purposes only and is not financial advice. StockVolt and its authors may hold positions in securities mentioned.