Asian stock markets plummet due to AI shock... TSMC once hit the lower limit
Nikkei falls 6%, Jiquan 4%, KOSPI circuit breaker activated
Quick Look
- Asian stock markets plummeted on the 6th in the aftermath of the selloff of AI-related stocks in the New York Stock Exchange.
- Nikkei fell 6.0%, Taiwan's Jiquan fell 3.8%, and KOSPI plunged 8.8% during the day, falling 5.1% after the circuit breaker was activated.
- Concerns about strengthening AI regulations following the Democratic Party's landslide victory in the U.S. midterm elections and liquidation of leverage increased the decline.
AI-generated summary
Why It Matters
On the 6th, Asian stock markets fell sharply in the aftermath of the New York Stock Exchange's selloff of AI-related stocks last night. The Nikkei 225 index plunged 7% immediately after opening and was traded at 57,438.00, down 6.0% as of 2 p.m., and the Topix index also fell 6.2%. KOSPI plunged by 8.8% during the day and fell 5.1% to 5,109.73 after the circuit breaker was activated.
On the 6th, Asian stock markets are showing a sharp decline in the aftermath of the New York Stock Exchange's selloff of artificial intelligence (AI)-related stocks last night.
The Nikkei 225 index, centered on Japanese technology stocks, plunged 7% immediately after opening, but then narrowed the decline and was traded at 57,438.00, down 6.0% as of 2 p.m. The Topix index also fell 6.2%.
Bloomberg News reported that Nikkei is poised to record its largest daily decline since April of last year.
Softbank Group plunged 15.8% and Kioxia 15.3% immediately after opening, but then narrowed the decline and fell 10.6% and 10.0%, respectively.
Taiwan's Jiquan Index is trading at 39,996.07, down 3.8%.
Immediately after opening, it plummeted 3,737.67 points (9.0%), recording the largest intraday drop in history.
TSMC, which accounts for more than 40% of the market capitalization, was once pushed to the -10% lower limit (NT$2,020), but then narrowed the decline to NT$2,145, down 4.2%.
KOSPI also plunged by 8.8% during the day, dropping 5.1% to 5,109.73 after the circuit breaker was activated.
On the other hand, the decline in the Greater China region was relatively small. Hong Kong's Hang Seng Index fell 1.3%, the Shanghai Composite Index fell 1.3%, and the Keqiang Ban (Science Startup Edition) STAR50 Index fell 2.5%.
It was analyzed that the Democratic Party's landslide victory in the U.S. midterm elections raised concerns about strengthening AI regulations and a slowdown in data center construction, and that the decline increased due to leverage and forced liquidation.
“There is definitely an element of panic in the selling, and the positioning is making the correction much more intense,” said Charu Chanana, chief investment strategist at investment bank Saxobank.
What to Watch
AI outlook — possibilities, not facts
Asian stock markets are likely to remain volatile for the time being.
Likely · Within days
Open Questions
- What specific impact will the U.S. midterm election results have on AI regulation?
- When will Asian stock markets rebound?
- What is the outlook for KOSPI’s additional volatility after the circuit breaker is activated?
