Asia markets drop as AI stock sell-off extends from Wall Street

November 07, 2025 (MLN):  Asia markets fell sharply on Friday, mirroring overnight losses on Wall Street as investors continued to worry about stretched valuations in artificial intelligence (AI) stocks.

Japan led regional declines, with the Nikkei 225 plunging 1.93%, dragged down by major AI-linked shares. SoftBank tumbled more than 8%, Advantest shed over 7%, Renesas Electronics dropped 4%, and Tokyo Electron lost 2.17%.

The broader Topix index retreated 0.99%.

In South Korea, the Kospi slipped 1.47% amid choppy trading, while the Kosdaq declined 1.96%. Australia’s S&P/ASX 200 edged down 0.27%, and Hong Kong’s Hang Seng Index weakened 0.61%. On the mainland, the CSI 300 fell 0.3%.

Sentiment in China was further dampened by weaker-than-expected trade data. October exports fell 1.1% year-on-year in U.S. dollar terms, missing forecasts for a 3% rise and reversing the 8.3% surge seen in September.

Imports grew only 1%, short of expectations for a 3.2% increase, underscoring tepid domestic demand amid a prolonged property slump, rising job insecurity, and fading consumption support measures.

The regional downturn followed a sharp sell-off in U.S. tech stocks overnight. Major AI names including Nvidia, Microsoft, Palantir Technologies, Broadcom, and Advanced Micro Devices led declines, dragging the broader market lower.

The Dow Jones Industrial Average fell 398.70 points (0.84%) to 46,912.30, while the S&P 500 dropped 1.12% to 6,720.32. The Nasdaq Composite tumbled 1.9% to close at 23,053.99.

U.S. stock futures edged slightly higher in early Asian trading hours, but investor caution remained elevated amid ongoing concerns about AI stock valuations and slowing global growth.

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