
AI-generated summary
US shares tumbled overnight on worries that midterm election results could slow or derail the artificial intelligence data centre investment boom, which spilled over into Japanese and South Korean markets.
The tech rout in the US also battered chip-related shares of Samsung Electronics, SK Hynix and Kioxia
Japanese and South Korean shares plunged on Friday after US shares tumbled overnight on worries that midterm election results could slow or derail the artificial intelligence data centre investment boom.
Tokyo's benchmark Nikkei 225 index fell 5.1 per cent to 56,930 points in early trade.
Seoul's Kospi index dived 8.5 per cent to 4,923, triggering a circuit breaker which suspended trading for 20 minutes.
The 9th Hongqiao International Economic Forum released the "World Openness Report 2026", which shows that the world openness index will drop by 1% year-on-year in 2025, the largest decline since 2016; China's openness index ranking has risen against the trend, and digital economy, green and low-carbon, and South-South cooperation have become new driving forces.

After the U.S. midterm elections, the market's doubts about the regulation of AI data centers, financing costs and investment payback periods increased. U.S. and Taiwanese stocks' AI supply chains plummeted, and the Philadelphia Semiconductor Index plummeted by about 12%. Nomura Investment Bank pointed out that in the future, we need to pay close attention to the three major indicators of cloud industry capital expenditure guidance, supply chain orders and shipment progress, and whether AI applications can drive actual revenue. If the fundamentals are solid, stock price correction may bring layout opportunities for AI supply chain leaders with competitive advantages.

The 9th China International Import Expo showed that international brands such as MUJI, IKEA, and Crocs integrated traditional Chinese elements into their products; multinational companies such as L'Oreal, Medtronic, and Siemens jointly developed products with Chinese companies, and their products were sold overseas. The Chinese market is transforming from a sales destination to a participant and contributor to global innovation.

Affected by the sharp decline in U.S. stocks, Taiwan stocks collapsed at the opening, plunging more than 3,000 points at one point, the largest intraday drop in history. Nguyen Thanh Hua, Undersecretary of the Ministry of Finance and Executive Secretary of the National Security Fund, said that the National Security Fund pays close attention to market conditions. If there is disorder or a collapse of confidence in the market, it is not ruled out that an extraordinary meeting will be held to discuss follow-up response measures, and "the National Security Fund will not fail to take action."

The 2026 China International Public Procurement Forum opened in Shanghai on the 5th. Vice Minister of Finance Lin Zechang delivered a speech, saying that China will promote the reform of the government procurement system and build a legal and international business environment. The national government procurement scale in 2025 will be 3321.296 billion yuan, of which the contract value awarded to small and medium-sized enterprises will be 2308.162 billion yuan, accounting for 69.49%. This forum is one of the important supporting activities of the 9th CIIE.

U.S. technology stocks plummeted on Thursday, with Korean stocks Samsung and SK Hynix plunging more than 10% in early trading. The memory group of Taiwan stocks was once again hit by selling pressure today (6th). Nanya (2408) and Winbond (2344) both fell into the lower limit, hitting 324 yuan and 115 yuan respectively. The lower limit was opened at 9:55 am. As of 10:03 a.m., Nanya was provisionally quoted at 332.5 yuan, down 7.64%, with a trading volume of 22,000 contracts; Winbond was provisionally quoted at 117 yuan, still down 8.24%, with a trading volume of 29,000 contracts. The three major legal entities sold a total of more than 12,000 pieces each yesterday, of which foreign investors sold more than 28,000 pieces to Nanya Corian 3 and sold more than 70,000 pieces to Winbond Dianlian 5.