Asian stock markets plunged Friday as a massive Wall Street sell-off spread overseas, sending major indexes in Japan, South Korea and Taiwan sharply lower.
Meanwhile, U.S. stock futures were mixed, with Nasdaq futures climbing approximately 1.3%, signaling a potential rebound for technology stocks following Thursday’s steep declines. Dow futures, however, fell 0.71%.
South Korea’s benchmark KOSPI index plunged more than 8%, triggering a temporary trading halt designed to prevent further market volatility, according to Reuters.
Trading later resumed, with the index down approximately 7%.
Trump Blames Democrats For Stock Market Plunge After Sweeping Midterm Victories
Japan’s tech-heavy Nikkei fell roughly 6%, putting it on track for its worst day in eight months, while Taiwan’s benchmark stock index dropped more than 8% as technology and semiconductor companies faced heavy selling pressure.
The sell-off was particularly severe among Asian chipmakers and companies tied to the artificial intelligence boom.
South Korean technology giant Samsung Electronics fell nearly 10%, while memory chipmaker SK Hynix dropped 11.7%.
Taiwan Semiconductor Manufacturing Company (TSMC) declined 8.5%, while Japanese technology investor SoftBank Group sank approximately 11%.
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The losses followed a sharp Wall Street sell-off Thursday, when the Dow Jones Industrial Average fell 1,833 points, or 3.44%, and the S&P 500 declined 4.36%.
The Nasdaq Composite also plunged 5.52%, entering correction territory after falling more than 10% from its October record high.
Investors have been weighing the potential impact of Democrats’ sweeping midterm election victories, which handed the party control of both chambers of Congress.
The election results have raised concerns among some investors about increased regulation of AI companies and potential restrictions on data center development.
President Donald Trump blamed Democrats’ midterm victories for Thursday’s stock market plunge, warning that Americans’ retirement savings had suffered losses.
“The Stock Market suffered one of the Worst Days in History based on the results of the Election,” Trump wrote on Truth Social.
Trump also expressed confidence that the market would rebound, declaring that the country would soon be “BIGGER AND STRONGER THAN EVER BEFORE.”
Original article source: Asian stock markets plunge as Japan Nikkei, South Korea KOSPI and Taiwan stocks fall