Asian stock market crash! Nikkei plunges more than 4,000 points in early trading, South Korean stocks plunge 8%, triggering circuit breaker
The Democratic Party won control of the U.S. Congress, and the market was worried about stricter regulations on AI construction, causing the decline of technology stocks to expand.
Quick Look
- U.S. stocks fell sharply on Thursday, with the Dow Jones falling 1,833.06 points or 3.44%, the Nasdaq falling 5.52%, the S&P 500 falling 4.36%, and the Philadelphia Semiconductor Index plummeting 12.25%.
- The disaster extended to Asia, with Taiwan stocks plummeting, the Nikkei index plummeting 4,106.9 points to 56,971.00 points, and Korean stocks falling more than 8% during the session, triggering the circuit breaker mechanism.
- The market is worried that investment in AI infrastructure will be suppressed after the Democrats win control of the U.S.
AI-generated summary
Why It Matters
U.S. stocks fell sharply on Thursday, with the Dow Jones Industrial Average falling 1,833.06 points or 3.44%, the Nasdaq Index falling 5.52%, the S&P 500 Index falling 4.36%, and the Philadelphia Semiconductor Index plummeting 12.25%. The Democratic Party has won control of the U.S. Congress, and the market is worried that regulations on AI construction will become more stringent and data center construction will slow down.
Asian stocks tumbled. (European News Agency file photo)
[Financial Channel/Comprehensive Report] U.S. stocks plummeted on Thursday, and the disaster extended to Asian stock markets. Not only did Taiwan stocks plummet, the Nikkei index also plummeted by 4,000 points, and South Korean stocks once plunged 8% and triggered the circuit breaker mechanism.
The Democratic Party won control of the U.S. Congress. The market is worried that regulations on AI construction will be stricter. Data center construction is slowing down. Technology stocks have expanded their losses. The Dow Jones Industrial Index fell 1833.06 points or 3.44%. The Nasdaq Index fell 5.52%, which is more than 10% lower than the record high set last month. The S&P 500 Index fell 4.36%, and the Philadelphia Semiconductor Index plummeted 12.25%.
The Japanese stock market opened lower. After opening at 60374.35, the index fell all the way, falling 4106.9 points to 56971.00 points. At 9:19 am Taipei time, the index fell 3954.11 points or 6.47% to 57123.79 points.
According to Japanese media reports, this is the first time this year that the Nikkei Index has fallen below 60,000 points during the trading session. Analysts said that the market is worried that the Democratic Party's overwhelming victory in the U.S. midterm elections will curb investment in artificial intelligence (AI) infrastructure, causing selling pressure on artificial intelligence and semiconductor-related stocks in the Tokyo stock market.
In terms of Korean stocks, Korean media pointed out that the market is worried that after the US Democratic Party takes control of the House and Senate, it may tighten the supervision of artificial intelligence (AI) data centers and delay the construction of data centers, causing investor doubts and dragging down the performance of global stock markets.
The South Korea Composite Stock Price Index (KOSPI) opened lower today (6th), plunging more than 8% intraday, falling below the 5,000-point mark, and triggered the first-stage circuit breaker mechanism, suspending trading for 20 minutes.
As of 9:26 a.m. Taipei time, the index fell 7.71% or 415.01 points to 4968.79 points.
What to Watch
AI outlook — possibilities, not facts
Asian stock markets will continue to be under pressure in the short term, and technology and semiconductor stocks may continue to fall.
Likely · Within days
Open Questions
- What specific AI regulatory measures will the Democratic Party take?
- What is the specific decline of Taiwan stocks?
- What will be the subsequent trend after the Nikkei Index falls below 60,000 points?
- How has the Korean stock market performed since trading resumed after the circuit breaker?
