Asian stock markets plunged on Friday, November 6, as a massive selloff in artificial intelligence stocks spread from Wall Street to major financial markets across the region. Japan and South Korea suffered particularly heavy losses as investors questioned the future of the AI investment boom.
Japan’s Nikkei 225 fell 6.1% to 57,332.92 points, dropping below 60,000 for the first time in nearly six months. Meanwhile, South Korea’s Kospi declined 6.3% to 5,042.65 points, according to the Associated Press.
The downturn followed Thursday’s sharp losses in the United States, where the Nasdaq dropped 5.5% and the S&P 500 fell 4.4%.
Japan and South Korea Hit Hard by Technology Selloff
Technology companies led the decline across Asian stock markets, particularly businesses involved in semiconductor manufacturing and artificial intelligence infrastructure.
In Japan, shares of SoftBank Group and semiconductor equipment manufacturer Advantest came under heavy pressure. Both companies have significant exposure to the technology industry.
South Korea also experienced widespread selling, with major chipmakers Samsung Electronics and SK Hynix among the companies affected.
The Kospi fell more than 8% during early trading, triggering a temporary trading halt designed to prevent disorderly market conditions. The index later recovered some of its losses.
Other Asian markets also declined.
Hong Kong’s Hang Seng fell 0.9%, while China’s Shanghai Composite lost 1.1%. Australia’s S&P/ASX 200 slipped 0.5%.
The losses demonstrated how closely Asian technology companies are connected to the American artificial intelligence industry.
Why AI Concerns Are Shaking Global Markets
The Asian stock markets selloff reflects growing uncertainty about the enormous investments required to develop artificial intelligence infrastructure.
Technology companies have spent billions of dollars building data centers and purchasing advanced semiconductor chips. However, investors are increasingly questioning whether these investments will generate sufficient profits.
High borrowing costs have also raised concerns about the financial sustainability of major AI projects.
Political developments in the United States have added pressure.
Following Democratic victories in the US midterm elections, investors are considering whether tighter regulations could slow the construction of new data centers.
Such restrictions could reduce demand for the advanced chips and equipment manufactured by companies in Japan, South Korea and Taiwan.
According to Reuters, the uncertainty has also encouraged investors to move money into government bonds, traditionally considered safer investments during periods of market volatility.
The latest losses highlight the global influence of America’s technology sector.
For now, investors are closely monitoring developments in Washington, corporate earnings and the outlook for AI infrastructure spending to assess whether the downturn will continue.
