Asian tech stocks sold off sharply on 6 November as investors tracked a collapse on Wall Street. The fear is that Democrats will ramp up AI regulation after their blowout win in this week’s US midterm elections. Seoul and Tokyo took the brunt, with SK hynix, Samsung and SoftBank posting substantial losses.
Why Did Asian Tech Stocks Sell Off on 6 November?
Trading boards were a sea of red in early business. The sector had pushed stock markets to record highs just five months ago.
Data centres have faced broad opposition from US voters across the political spectrum. Many midterm winners have pledged to put the brakes on these projects.
How Far Did Samsung and SK hynix Fall in Seoul?
- Seoul plunged almost 9% at one point.
- SK hynix was off 10%, while Samsung was 8% lower.
- Tokyo dived 7%, with Kioxia and SoftBank giving back more than 10%.
- Advantest fell more than 8% in Tokyo.
- TSMC dropped 7%, dragging Taipei’s Taiex around 8% lower.
The Kospi more than doubled between the end of December and mid-June, when it hit a record. It has since lost almost 50%.
Why Did the Nasdaq Plunge 5.5% in Its Worst Day Since April Last Year?
The Nasdaq plunged 5.5%, its worst day percentage-wise since April last year, when Trump unveiled his wide-ranging global tariffs. The S&P 500 tanked more than 4%, and the Dow fell more than 3%.
Bloomberg said the Philadelphia Semiconductor Index collapsed around 16% this week. That puts it on course for its worst run since April last year.
What Did Bernie Sanders and Michael Hewson Say About AI Buildout?
Progressive US Senator Bernie Sanders called for a national moratorium on data centre building. Analysts said this call spooked investors further.
Michael Hewson at MCH Market Insights said investors were selling because of concerns about greater opposition to AI buildout plans. He pointed to the Texas results, which prompted worries that politicians there might target Tesla and SpaceX due to Elon Musk’s support for Trump.
Trump blamed the collapse on Democrats on Truth Social. He wrote that the stock market crashed because the “Dumocrats” had a big Tuesday.
Why Are Oil Prices and US Jobs Data Adding Pressure?
Oil prices lifted again, extending Thursday’s gains after plunging on the midterm results. Hopes for an end to the Iran war had driven that earlier drop.
US jobs data is due later in the day, after broadly positive readings earlier in the week. Saxo Markets‘ Neil Wilson said the selling looks “totally overdone” but that the market needs stability first.
What Does This Mean for Bursa Malaysia Shareholders?
The source does not name any Bursa-listed company, so direct exposure cannot be confirmed from these figures. Analysts note that the core concern is the AI buildout itself.
Hundreds of billions have been pumped into the sector, and the recent spike in borrowing costs has raised doubts about firms’ finances. Malaysian investors with AI-linked holdings may want to check how much those companies depend on data centre spending. You can compare these themes using AI Stock Analysis for Malaysians.
Key Takeaways
- Seoul and Tokyo led the 6 November sell-off, with SK hynix down 10% and Samsung down 8%.
- The Nasdaq plunged 5.5%, its worst day percentage-wise since April last year.
- The Philadelphia Semiconductor Index collapsed around 16% this week.
- The Kospi has lost almost 50% since its mid-June record.
- The source names no Bursa-listed company, so the Bursa link is indirect.
Frequently Asked Questions
Why did Asian tech stocks fall on 6 November?
Asian tech stocks fell after a Wall Street collapse on fears that Democrats will ramp up AI regulation following their midterm victory. Seoul and Tokyo took the heaviest selling, with SK hynix down 10% and Samsung 8% lower.
How much has the Kospi fallen from its record?
The Kospi more than doubled between the end of December and mid-June, when it hit a record. It has since lost almost 50%.
Did the Nasdaq fall more than the S&P 500?
Yes. The Nasdaq plunged 5.5%, its worst day percentage-wise since April last year, while the S&P 500 tanked more than 4%.
Will Bursa Malaysia stocks be hit by the AI sell-off?
The source names no Bursa-listed company, so direct impact cannot be confirmed from these figures. Shareholders with AI-linked holdings may want to review how those companies depend on data centre spending.
Disclaimer: This article is for general information only and is not investment advice. Figures are drawn from AFP reporting published by MalayMail. Always do your own research before making any investment decision.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
Related Articles & Resources
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,300+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
