THE ESSENTIALS IN 30 SECONDS

  • The KOSPI fell as much as 8.76% shortly after the open, triggering a 20-minute trading halt, and closed 6.02% lower at 5,059.69; the Nikkei 225 ended down 6%, below 60,000.
  • Taiwan's Taiex dropped close to 9% intraday before closing down 4.51% at 39,701.64, its fourth-largest single-day point loss, Focus Taiwan reports.
  • Seoul waived its 140% margin-loan collateral rule for three months from 9 November; Taiwan's regulator cut intraday short-selling caps and said a NT$500 billion fund was available if needed.

A day after South Korean shares hit a seven-month low, the selloff in AI-linked stocks spread and intensified across Asia on Friday, 6 November. Investors continued to price in the risk that the Democrats' sweep in the US midterm elections could lead to tighter rules on AI data centers, slowing the infrastructure build-out that has powered chip stocks in the region.

Halts and heavy losses

In Seoul, the KOSPI was down 8.76% at 4,911.91 by 9:03 a.m., when a first-stage circuit breaker stopped trading for 20 minutes, according to the Seoul Economic Daily and MoneyToday. It later closed down 6.02% at 5,059.69, bringing its weekly loss to about 12%, Dow Jones reports. SK hynix fell more than 10%.

Tokyo's Nikkei 225 closed 6% lower, below the 60,000 mark, its worst session since April 2025. In Taipei, the Taiex fell to an intraday low of 37,837.05, close to 9% below Thursday's close, before ending down 4.51% at 39,701.64. Focus Taiwan calls it the index's fourth-largest one-day loss in points. TSMC, which makes up more than 40% of the market's value, hit its 10% daily limit before closing 4.69% lower. FinancialJuice and other outlets say the decline pushed the Taiwanese market into bear territory.

Governments step in

At an emergency meeting on Friday morning, South Korea's finance minister, financial regulators and the central bank agreed to suspend for three months, starting 9 November, the requirement that brokerages keep collateral worth 140% of margin loans. The aim is to curb forced selling. Critics quoted by the Seoul Economic Daily note that a similar step in 2020 did not prevent large forced sales a week later.

In Taiwan, the Financial Supervisory Commission said that from 9 November intraday short sales will be capped at 3% of a stock's 30-day average volume, down from 30%, and that the minimum short-sale margin rises to 130% from 90%. The Finance Ministry said a NT$500 billion (about $15 billion) stabilization fund was available if needed; whether it has actually bought shares has not been confirmed.

Some analysts quoted by Dow Jones argue the regulatory fears may be overdone given continued AI demand. The sources describe market expectations, not any announced US policy change.