AI sell-off drags Asian markets lower
Japanese and South Korean shares fall sharply as investors worldwide question the value of AI investments.
Follow-up to: Nasdaq falls again amid concerns over AI shares Thursday, 5 November 2026, 16:13
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Asian markets fell sharply on Friday. Reuters links the sell-off to investor concerns about AI. Technology and chip companies in Japan and South Korea were particularly hard hit after Wall Street suffered a heavy fall the previous day.
Japan’s Nikkei index fell by more than 6 per cent at the open, while South Korea’s Kospi lost 7.4 per cent. Samsung Electronics fell 7.9 per cent in morning trading, Associated Press reports.
The move follows falls of 5.5 per cent for the Nasdaq and 4.4 per cent for the broad S&P 500 in the United States. According to Reuters, investors were anticipating stricter US rules on artificial intelligence and questioning whether the huge investments in data centres and chips would generate returns quickly enough.
Show the figures
| Decline | |
|---|---|
| Nasdaq | -5.5% |
| S&P 500 | -4.4% |
| Kospi | -7.4% |
Trading in South Korea was temporarily halted after the decline reached the applicable threshold. Such a circuit breaker automatically stops trading to curb panic selling; it is not a substantive judgement on individual companies.
The concerns affect a sector that has been valued heavily in recent years on the basis of expectations of future growth. Chipmakers, data-centre equipment manufacturers and companies providing AI services are therefore among the most vulnerable shares when investors reduce their risk exposure.
The decline does not mean that demand for AI technology has disappeared. However, the price movements show that investors are looking more critically at the relationship between investment, profit and future returns. The market movement also says nothing directly about AI’s productivity or social value.
The sell-off could also have indirect consequences for Dutch companies. European suppliers, chip companies and technology shares may move with international markets, while a prolonged correction could make financing for new data centres and AI projects more expensive. On Friday morning, it was still uncertain whether the sell-off would develop into a broader market correction.
Also show the region and a close-up
Both sides of the figures
▲ Bright spots
- The correction could expose overvaluation in AI shares more quickly and shift capital towards companies with demonstrable profits.
- The price falls do not in themselves prove that underlying demand for chips and data centres is declining.
▼ Concerns
- The Nasdaq fell 5.5 per cent and the S&P 500 4.4 per cent, potentially causing losses for investors and pension funds.
- Chip and data-centre companies in Asia were particularly hard hit; the Kospi fell 7.4 per cent.
Critical note
This is market information, not a measure of the real economy. Price falls show expectations and risk assessments, but do not prove that AI investment or broader productivity is declining.
Who notices what
- Investors
- Investors in technology and chip funds are directly facing lower prices and greater uncertainty.
- Businesses
- Technology companies may find it harder or more expensive to raise capital if the correction continues.
- Workers
- A prolonged decline could slow future hiring and investment in the technology sector.
- Government
- Regulators must take account of both financial stability and the consequences of new AI rules.
Every point comes from the article’s sources and was included in the fact check.
One story, several perspectives
What is established
- Stock markets in the United States, Japan and South Korea fell sharply after a sell-off in AI-related shares.
- Reuters cites stricter regulation and doubts about the sustainability of AI investments as investor concerns.
- The market data do not prove that AI investments are economically unprofitable.
Left
Arguments A left-wing approach emphasises that public rules may be needed to limit speculation, concentration of power and the social risks of AI, even if this slows the sector’s growth.
Values Protecting workers, consumers and society carries more weight than maximising the speed of technological expansion.
Consequences Stricter rules may curb investment, but from this perspective they may also limit harm and overvaluation.
Centre
Arguments The institutional approach seeks to leave room for innovation, but calls for transparency about risks, returns and oversight before major investments are scaled up further.
Values Stability, predictable regulation and a balance between innovation and protection.
Consequences A gradual tightening of rules may calm the market, but uncertainty during the transition could temporarily slow investment.
Right
Arguments A right-wing approach warns that government intervention could undermine the competitiveness of companies and countries, particularly against countries with fewer rules.
Values Entrepreneurship, economic freedom and international competitiveness.
Consequences Fewer rules may support investment and innovation, but they also leave companies and investors bearing more risk in the event of a correction.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The price movements and percentages cited appear in the AP and Reuters reports used. The text distinguishes between established market data and possible explanations offered by investors.
- confirmed The Nikkei fell by more than 6 per cent at the open. — Associated Press reports this decline. source
- confirmed The Kospi lost 7.4 per cent and Samsung Electronics 7.9 per cent. — Associated Press cites both percentages. source
- confirmed The Nasdaq fell 5.5 per cent and the S&P 500 4.4 per cent. — Reuters and AP describe the US sell-off; the cited percentages appear in the Reuters summary. source
- confirmed Trading in South Korea was temporarily halted. — Reuters reports a circuit breaker after a fall of more than 8 per cent. source
- confirmed Investors are concerned about stricter AI rules and the return expectations for AI investments. — Reuters describes both concerns as explanations for the sell-off. source
Editor's note
The price falls and temporary trading halt have been confirmed by AP and Reuters. The possible causes — stricter regulation and doubts about AI investments — were described by Reuters as investor concerns, not established causes.Sources
The story so far
- Thursday, 5 November 2026, 16:13 Nasdaq falls again amid concerns over AI shares
- Friday, 6 November 2026, 07:14 AI sell-off drags Asian markets lower (this article)
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