{
  "id": 18430331,
  "title": "Asia stocks crumble after AI rout rocks US markets",
  "url": "https://urgent.news/2026/11/06/asia-stocks-crumble-after-ai-rout-rocks-us-markets-18430331",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-06T02:41:14.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40447714/asia-stocks-crumble-after-ai-rout-rocks-us-markets"
  },
  "original_language": "en",
  "account": "Asia's tech-focused markets plunged on Friday, driven by concerns over stricter regulations and a slowdown in the development of artificial intelligence (AI) systems. The sharp decline in US stocks since the \"Liberation Day\" rout in April 2025 prompted the steepest drop in stock markets outside the United States. South Korea's KOSPI dropped over 8%, triggering a circuit breaker and falling 7% after resuming trading. Japan's Nikkei plunged 6%, while Taiwan's market was down more than 8%. Wall Street's volatility surged, with the Nasdaq falling 5.5% and $3 trillion wiped off S&P 500 companies' valuations due to investors' worries about the impact of Democratic-majority political control on the AI industry. Charu Chanana, chief investment strategist at Saxo, noted that the panic selling was reinforced by leverage and forced liquidations. AI chipmakers, including Samsung Electronics and SK Hynix, experienced significant declines, while Kioxia saw the steepest drop of 14%. SoftBank Group's shares plummeted by 11%, and the cost of insuring against a default for the company hit its highest level in four years. European stock futures also fell by 1%, suggesting the sell-off could extend to other regions. Investors expressed fear that slowing AI infrastructure expansion might negatively affect smaller firms struggling to raise capital due to higher interest rates and tighter financial conditions. CoreWeave, a benchmark AI investment, fell by 10%, with its 5-year credit default swap spreads reaching a record high. The sentiment shift towards AI investments is evident, with Michael McCarthy, chief executive for Australia and New Zealand at Moomoo, stating that the market turning point was marked by significant disagreements resulting in sharp price swings. The selling indicates growing concerns about local opposition to data center construction and its impact on communities. Asian markets saw a decline in the Philadelphia Semiconductor Index by 12.2% and the Nasdaq, which initially rebounded after the midterm elections, now lost 12% from its record high. Bonds were expected to rise, and the US dollar weakened against safe-haven currencies like the yen and Swiss franc. Nick Ferres, chief investment officer at Vantage Point Asset Management in Singapore, predicted a further rally in treasuries and a gloomy outlook for semiconductor and memory stocks.",
  "summary": "SINGAPORE: Asia’s tech-heavy markets crumbled on Friday as fear of increased regulatory scrutiny and a slowdown in AI build-out unleashed the steepest decline in US stocks since the tariff-triggered “Liberation Day” rout in April 2025. South Korea’s KOSPI fell more than 8% to trigger a circuit breaker and was last down 7% after trading resumed. Japan’s Nikkei slumped 6% while Taiwan was last down…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "The Jakarta Post",
        "title": "Asia stocks crumble after AI rout rocks US markets",
        "url": "https://urgent.news/2026/11/06/asia-stocks-crumble-after-ai-rout-rocks-us-markets",
        "published": "2026-11-06T00:37:48.000Z"
      },
      {
        "outlet": "Straits Times Business",
        "title": "Asia stocks crumble after AI rout rocks US markets",
        "url": "https://urgent.news/2026/11/06/asia-stocks-crumble-after-ai-rout-rocks-us-markets-18418526",
        "published": "2026-11-06T01:52:00.000Z"
      },
      {
        "outlet": "Investing.com",
        "title": "Asia stocks crumble after AI rout rocks US markets",
        "url": "https://urgent.news/2026/11/06/asia-stocks-crumble-after-ai-rout-rocks-us-markets-18423055",
        "published": "2026-11-06T02:18:37.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}