Asian tech markets fall amid AI concerns; Nasdaq drops 5.5%

Technology-heavy markets across Asia fell on Friday, November 6, amid investor concerns about regulatory scrutiny and a possible slowdown in AI infrastructure expansion. The declines coincided with a 5.5% fall in the Nasdaq and a $3 trillion loss in value for S&P 500 companies.

Reports differ on the size of some regional moves. Japan’s Nikkei was reported down 6% in one account and 7% immediately after opening in another. South Korea’s KOSPI fell more than 8% and triggered a circuit breaker; one account said it was down 7% after trading resumed, while another put South Korean benchmark indices down more than 8%. Taiwan’s benchmark indices were also reported down more than 8%.

Among chipmakers, Samsung Electronics fell nearly 10%, while reports put SK Hynix’s decline at 11.7% and about 12%. Japan’s Kioxia fell 14%, and Taiwan’s TSMC was down as much as 8.5%. The Philadelphia Semiconductor Index fell 12.2%, and the Nasdaq was 12% below its record close a month earlier.

Concerns also centred on the returns from heavy AI infrastructure spending and the ability of smaller firms to raise funds amid higher interest rates and tighter financial conditions. CoreWeave, a neocloud company associated with AI spending and borrowing, fell 10%, while its five-year credit default swap spreads widened to a record level.

Stocks across the region appeared to stabilize as dip buyers emerged. Bonds gained in Asia, while the US dollar slipped against the yen and Swiss franc. The US 10-year Treasury yield stood at 4.838%, near its lowest level since September 9.