Asian Markets Plunge as US Midterm Results Spark AI Selloff

Asian stock markets experienced a severe selloff on November 6, 2026, triggered by a collapse in United States technology shares. The downturn followed Democratic victories in the U.S. midterm elections, which sparked investor anxiety that new regulations on artificial intelligence and data center construction would derail the AI investment boom. The Nasdaq suffered its worst percentage loss since April 2025, falling 5.5 percent.

Monex, Inc. attributed the market volatility to concerns that stricter regulations on AI-related technologies would lead to a broad sell-off. This sentiment hit the semiconductor sector hardest. In South Korea, the Kospi index dived 8.5 percent and fell below the 5,000 level, triggering a 20-minute circuit breaker. Samsung Electronics and SK hynix saw shares plunge nearly 10 percent and more than 11 percent, respectively. In Japan, the Nikkei 225 fell more than 6 percent, with Kioxia shedding 13 percent and Tokyo Electron America, Inc. trading down around nine percent.

While North Asia and Taiwan faced systemic unwinds of semiconductor positions, some resilience appeared in the Asian consumer sector. Strong earnings reports from India, China, and Japan provided a partial offset to the tech-driven decline. In South Korea, retail traders who invested in AI trends to eliminate the Korea discount faced substantial losses, particularly those using levered ETFs.