South Korea stocks plunge as US midterm results spark AI selloff
Chipmakers led the rout as investors feared tighter U.S. oversight could slow data center construction and curb demand for Korean semiconductors.
- On Friday, South Korea's KOSPI closed down 6.02% at 5,059.69, as semiconductor giants Samsung Electronics and SK hynix plunged 7.57% and 9.46%, respectively, triggering intraday circuit breakers.
- Investors dumped technology stocks following the Democratic Party's November 3 midterm sweep, fueling fears that stricter AI oversight could delay data center construction and reduce demand for advanced chips.
- The sell-off intensified following Thursday's brutal Wall Street session, where the Philadelphia Semiconductor Index plummeted 12.2% and the S&P 500 fell 4.4%, deepening concerns about AI investment sustainability.
- Finance Minister Lee Hyoung-il pledged to implement measures curbing excessive volatility, including a three-month waiver of margin-loan collateral requirements for brokerages starting Monday to stabilize markets.
- BMI analysts warn regulatory friction could intensify through 2028, threatening Korea's $2.25 trillion economy, which relies heavily on chipmakers' earnings for fiscal stability and future growth.
72 Articles
72 Articles
Hong Kong, China. The actions of the technological giants plummeted on Asian stock markets this Friday, as happened on the eve of Wall Street, New York, in view of the prospect of greater regulation of artificial intelligence (IA) with the triumph of the Democrats in the US elections.The main victims were the companies of the semiconductor and microchip industry, indispensable for the data centers where the AI models are trained and developed.In…
AI News Digest — November 6, 2026
📉 Asias AI hangover: circuit breaker in Seoul, record point drop in TaipeiThe AI-chip rout that hit Wall Street midweek went into full gear in Asia on Friday: per Nikkei Asia, Taiwans Taiex saw its steepest-ever intraday point drop and South Koreas KOSPI fell 8.7% at one point, prompting a circuit breaker by the Korea Exchange, with the Nikkei down 6.7%. Verify check: live daily candles (Yahoo Finance) show Friday closes of -4.5% for the Taiex …
Korea, Taiwan and Japan take first jolt from Democratic AI shock
SEOUL – The fallout from this week’s US midterms is already upending South Korea’s financial system. On Friday, the Kospi plunged more than 8% and fell below 5,000 for the first time since February. Investors clearly fear the Democratic sweep on November 3 will delay or halt data center construction in the US. Chip makers […]
The sharp decline in the US market is impacting investors' portfolios. Even though the Indian market is rising, most investors' portfolios are in the red. In one country, the decline was so severe that trading was halted for 20 minutes.
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