Asian Stocks Tumble as Tech Selloff Batters Japan and South Korea
Asian stock markets tumbled on Friday, led by sharp declines in Japan and South Korea, as investors dumped technology shares over fears about artificial intelligence investments following the U.S. midterm elections, Investing.com reported. The regional rout followed Wall Street’s steepest single-day decline in more than a year on Thursday, where the S&P 500 tumbled 4.4 percent, the Nasdaq Composite slumped 5.5 percent, and the Dow Jones Industrial Average lost 3.4 percent.
South Korea’s KOSPI index ended 6 percent lower after plunging as much as 8.8 percent to 4,911.28 points, marking its lowest level since early February, according to Investing.com. The Korea Exchange triggered a 20-minute circuit breaker following an 8 percent drop, temporarily suspending stock and derivatives trading. Samsung Electronics fell 6.4 percent, while SK Hynix slid 10.4 percent.
Nikkei Enters Bear Market Territory
Japan’s Nikkei 225 closed 6 percent lower, pushing the benchmark index more than 20 percent below its June record high and bringing it into bear-market territory. Japan’s broader TOPIX index also declined by nearly 6 percent. Major technology and semiconductor stocks drove the losses, with equipment maker Advantest, memory-chip producer Kioxia Holdings, and SoftBank Group among the hardest hit. These drops extended a previous session rout that saw Advantest plunge 15 percent, Lasertec drop 14 percent, and Kioxia fall 13 percent.
The wave of selling extended across other regional markets. Taiwan’s weighted index fell 4.5 percent, with Taiwan Semiconductor Manufacturing Co shares slipping 4.8 percent. China’s index dropped 1.1 percent, the blue-chip index declined 1.4 percent, Hong Kong’s index fell 1.2 percent, and Singapore’s index dropped 2.8 percent. Australia’s index fell 0.5 percent, while India’s index managed a 0.5 percent gain.
Washington Midterm Elections and Semiconductor Valuations
Pressure on semiconductor companies mounted following a nearly 10 percent overnight drop in Qualcomm shares after its smartphone chip sales missed analyst estimates. This added to investor skepticism regarding elevated market valuations and the financial returns on massive artificial intelligence infrastructure spending. The U.S. midterm election outcome introduced additional uncertainty, as Democratic gains raised concerns that a Democrat-controlled Congress might increase scrutiny on data center developments and slow construction in states where candidates campaigned against large-scale projects.
While initial optimism surrounded expectations that a Democratic victory could accelerate efforts to end the Iran war, concerns over semiconductor earnings and AI spending quickly dominated trading floors. Oil prices rebounded in Asian trading on Friday following earlier weekly losses as investors weighed President Donald Trump’s potential next moves regarding Iran.
Market Comparison and Future Trading Outlook
| Index / Market | Percentage Change | Key Drivers / Events |
|---|---|---|
| South Korea KOSPI | -6.0% | Circuit breaker triggered after an 8% drop; index plunged as much as 8.8%; Samsung and SK Hynix lead tech losses. |
| Japan Nikkei 225 | -6.0% | Entered bear market; sharp declines in Advantest, Kioxia, and SoftBank. |
| Taiwan Weighted | -4.5% | TSMC shares dropped 4.8% amid broader semiconductor weakness. |
| S&P 500 (Thursday Close) | -4.4% | Steepest single-day U.S. decline in more than a year. |
U.S. stock futures traded mixed during Asian trading hours by 07:09 GMT, with Nasdaq 100 Futures rising even as regional Asian exchanges absorbed heavy losses.
Related reading