Published November 6, 2026 | Global Markets. South Korea’s KOSPI triggered a trading halt and Japan’s Nikkei plunged as the global AI stock selloff spread across Asia.

Market quotes are time-sensitive. This article is educational financial reporting, not investment advice.

Asia faces a wave of selling

Asian stocks fell sharply on Friday, November 6, as investors reacted to the previous day’s steep losses in US technology and AI-related companies. Reuters reported that South Korea’s stock market halted trading after an 8% decline and Japan’s Nikkei fell more than 6%. These figures describe the developing session and should not be mistaken for final closing levels.

What triggered the market reaction?

The US Nasdaq Composite had fallen 5.5% on Thursday amid concerns about AI infrastructure spending, valuations and possible regulatory scrutiny after the US midterm elections. Investors also reduced leveraged exposure, amplifying price swings. The policy outlook is uncertain; potential oversight should not be described as enacted restrictions.

Why South Korea and Japan are exposed

Both markets contain major semiconductor manufacturers, electronics businesses and suppliers linked to global AI spending. When expectations for data-centre investment change, those companies can face abrupt repricing. Japan also responds to yen movements and monetary-policy expectations, while Korean equities are sensitive to foreign fund flows.

What a trading halt means

An exchange-level trading halt is a volatility-control mechanism, not evidence that all listed companies have failed or that trading is permanently suspended. Investors should consult the exchange for the exact trigger, duration and reopening conditions.

What traders should watch

Track the official KOSPI and Nikkei close, semiconductor-sector breadth, foreign flows, US futures and the yen. Compare changes in local currency and US dollars before drawing conclusions about international returns.

Bottom line

Asia’s selloff highlights how concentrated technology exposure and global portfolio flows can transmit shocks across borders. A volatile opening session is not a reliable prediction of the next trading day.

Sources

FAQ

Are these final closing prices?

Only prices explicitly identified as closes should be treated as official closing figures. Other quotes may change during the session.

Should I buy or sell based on this article?

No. Consider your circumstances and risk tolerance and verify official sources before making financial decisions.