Asian Markets Sell-Off: How the US Midterm Results and the AI Sell-Off Hit the Nikkei 225, Kospi, Taiwan and China

The Asian markets sell-off on Friday, 6 November 2026, followed a tech-led fall on Wall Street, and the Nikkei 225 was at the centre of it, with Japan, South Korea and Taiwan taking the heaviest losses. This article lays out the data country by country, explains why AI-linked stocks drove the move after the US midterm results, per the press, and shows what it meant for India.

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Asian Markets Sell-Off: Data From US to Asia

Market	Move	Source note
Nasdaq Composite (Thursday)	Down 5.52% to 24,315	Steepest one-day fall since April 2025, per earlier reports
S&P 500 (Thursday)	Down 4.36% to 7,353.73	Same reports
Dow Jones (Thursday)	Down 3.44%	Same reports
Nikkei 225 (Friday close)	Down about 6%	CNN
Kospi (Friday close)	Down about 6%	CNN
Taiex (Friday close)	Down 4.5%	CNN

Intraday declines were deeper than the closing figures: the Japan Times reported the Nikkei 225 down more than 7% at 10:25 am, below 60,000 for the first time since May. Different outlets give slightly different figures, so this article uses closing data from CNN and labels intraday moves.

Nikkei 225 in the Asian Markets Sell-Off

The Nikkei 225 fell 1.8% to 61,077.90 on Thursday and then slid further on Friday. Japanese chip and data-centre names led the fall, with Rohm down 20%, Furukawa Electric down over 19%, Resonac down 15%, Kioxia down more than 12% and SoftBank Group down 11% in the morning, per the Japan Times. The Nikkei 225 is heavily weighted to technology, which explains why it moved with the Nasdaq.

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Kospi and Taiwan in the Asian Markets Sell-Off

Market	Thursday 5 November	Friday 6 November
Kospi	Down 5.3% to 5,383.80 (AP); Samsung Electronics down 7.6%, SK Hynix down 9.4%	Closed about 6% lower (CNN)
Taiex	Down 3.2% (AP)	Closed 4.5% lower (CNN)
Nikkei 225	Down 1.8% to 61,077.90 (AP)	Closed about 6% lower (CNN); more than 7% down in the morning (Japan Times)

South Korea and Taiwan supply memory chips and components for AI data centres, so both indices are tied to AI spending. CNN said the concern is that the US election outcome could slow spending on AI data centres, which would hurt the supply chain across Asia. This is a market view reported by the press, not a forecast by Univest.

China and Hong Kong in the Asian Markets Sell-Off

Markets less exposed to AI held up better on Thursday: the Hang Seng rose 3.7% to 24,796.98 and the Shanghai Composite gained 0.1% to 3,689.91, per AP. I could not confirm Friday's closing levels for China in the sources used, so no figure is given for that day. The gap shows that the Asian markets sell-off was concentrated in chip-heavy markets such as the Nikkei 225, Kospi and Taiex and not a region-wide panic.

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What the Asian Markets Sell-Off Meant for India

India indicator (9:25 AM IST, 6 November)	Reading
Sensex	79,344.27, up 34.26 points (0.04%)
Nifty 50	24,484.10, down 52.50 points (0.21%)
Nifty Midcap 100	Down 1.17%
Nifty Smallcap 100	Down 1.67%
India VIX	16.48, up 5.74%
Nifty IT	Up about 1.5% to 2%

India avoided the worst of the Asian markets sell-off that hit the Nikkei 225 because the Sensex and Nifty had gained for six sessions, and IT stocks rose, per HDFC Sky and IANS. Mid-caps and small-caps fell more than the large caps, and volatility rose. Our earlier notes on the Wall Street rout, chip stocks and the Kospi crash give the background; index pages are on Sensex and Nifty 50, and IT exposure on Nifty IT.

What to Watch After the Asian Markets Sell-Off

Watch item	Why it matters
Nikkei 225 and Kospi levels	A further fall would show whether AI selling is spreading
US futures and Nasdaq	The next US session sets the tone for Asia
India VIX	Rising volatility often precedes wider swings
FPI flows	Foreign buying has supported Indian shares this week

Conclusion

The Asian markets sell-off was a chip and AI story: the Nikkei 225, Kospi and Taiex fell 4.5% to about 6% at the close, while China held up better on Thursday and India stayed near flat. Use closing data, treat intraday figures with care, and review exposure to AI-linked stocks.

Frequently Asked Questions on the Asian Markets Sell-Off

What caused the Asian markets sell-off on 6 November 2026?

Ans. Per the press, a tech-led fall on Wall Street after the US midterm results hit AI-linked stocks. Investors worried that the election outcome could slow spending on AI data centres, which supports chipmakers in Japan, South Korea and Taiwan.

How much did the Nikkei 225 fall in the Asian markets sell-off?

Ans. CNN reported the Nikkei 225 closed about 6% lower on Friday. The Japan Times said it was down more than 7% in the morning and fell below 60,000 for the first time since May.

How much did the Kospi and Taiex fall?

Ans. CNN reported the Kospi closed about 6% lower and the Taiex ended 4.5% lower on Friday. On Thursday the Kospi fell 5.3% to 5,383.80 and the Taiex lost 3.2%, per AP.

Why did China fall less than the Nikkei 225 and Kospi?

Ans. Chinese and Hong Kong markets are less exposed to the AI chip supply chain. On Thursday the Hang Seng rose 3.7% and the Shanghai Composite gained 0.1%, per AP. Friday closing levels were not confirmed here.

How did the Nasdaq and S&P 500 perform?

Ans. Earlier reports put the Nasdaq Composite down 5.52% to 24,315, the S&P 500 down 4.36% to 7,353.73 and the Dow down 3.44% on Thursday. The Nasdaq fall was its steepest in a day since April 2025.

Did the Asian markets sell-off hit the Sensex and Nifty?

Ans. Only mildly at the open. At 9:25 AM the Sensex was up 0.04% and the Nifty down 0.21%, with IT stocks rising. Mid-caps and small-caps fell 1.17% and 1.67%, and India VIX rose 5.74%.

Are the figures in this article final?

Ans. No. Outlets report slightly different numbers, and intraday and closing moves differ. This article uses CNN's closing data for the Nikkei 225 and the rest of Asia, AP for Thursday and labels each source. Check official exchange data for exact closes.

Should I sell my AI-linked stocks after the Asian markets sell-off?

Ans. Univest cannot give personal advice. Review how much of your portfolio is tied to AI-linked stocks, your time horizon and risk tolerance, or consult a SEBI-registered adviser before acting on a single day's move.