Asian stocks plunge after Nasdaq enters correction territory on AI fears

The National · Shweta Jain, Kyle Fitzgerald · 2026-11-05 15:50 UTC

Japan's Nikkei index slumps 7%, while South Korea's Kospi and Taiwan's benchmark index fall more than 8%

Asian stock markets tumbled on Friday as a technology-led sell-off on Wall Street spread to the region, with investors increasingly concerned that political shifts in the US could threaten the artificial intelligence investment boom.

Japan's Nikkei index slumped 7 per cent shortly after the opening bell, while South Korea's Kospi and Taiwan's benchmark index fell more than 8 per cent. The declines subsequently eased as investors stepped in to buy shares at lower prices.

South Korea's Kospi briefly fell more than 8 per cent, causing a circuit breaker that halted trading for 20 minutes. The index recovered some losses after trading resumed.

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