Asian markets tumble on renewed AI spending fears

November 06, 2026 (MLN): Asian markets tumbled on Friday, following a massive overnight sell-off on Wall Street, as renewed concerns over artificial intelligence (AI) spending and potential restrictions on data-centre expansion triggered heavy selling in technology stocks.

South Korea led regional losses, with the KOSPI plunging more than 8% to fall below the 5,000 mark, while the small-cap KOSDAQ declined over 7%. Japan's Nikkei 225 dropped more than 2%, while the broader TOPIX index lost 2.9%. Australia's S&P/ASX 200 slipped 0.9%.

Technology stocks remained under significant pressure across the region. South Korean chipmakers SK Hynix and Samsung Electronics fell more than 8% and 7%, respectively. LG Innotek and LG Display also declined 10% and 7.7%, respectively, according to CNBC.

Japanese technology shares faced similar pressure, with semiconductor testing equipment maker Advantest plunging 12.2% and Tokyo Electron falling 7.3%. SoftBank Group tumbled 11.6%, while Kioxia Holdings and Renesas Electronics lost nearly 10% and 7.5%, respectively.

In Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC) dropped 9.6%, while Hon Hai Precision Industry, also known as Foxconn, and Foxconn Technology declined 9.4% and 9.1%, respectively.

The sell-off followed Thursday's steep losses on Wall Street, where all three major US stock indexes recorded their worst single-day performances since April 2025.

The Nasdaq Composite plunged 5.5%, closing more than 10% below its recent peak and entering correction territory. The S&P 500 dropped 4.4%, while the Dow Jones Industrial Average shed more than 1,800 points, or 3.4%.

Investor sentiment weakened amid concerns that Democrats' sweeping victories in the US midterm elections could result in tighter restrictions on data-centre construction, potentially slowing investment in AI infrastructure and reducing future demand for semiconductors.

The technology sell-off extended across major US companies, with Micron Technology and Advanced Micro Devices each plunging 17%, while CoreWeave declined 10%. Nvidia fell 9%, turning negative for 2026, as the Magnificent Seven technology companies collectively lost more than $1 trillion in market value.

The broader regional decline also extended to other Asian markets, with Hong Kong's Hang Seng Index falling 1% and mainland China's CSI 300 declining 1.47%.

On a weekly basis, the Nasdaq Composite was down 4.4%, while the S&P 500 had shed nearly 3%. The Dow Jones Industrial Average remained relatively resilient, declining 0.5%.

Investors are also awaiting the release of the US October employment report on Friday. Market expectations point to 59,000 additional jobs during the month, while the unemployment rate is projected to remain unchanged at 4.2%.

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