Thursday's US Rout Knocks $1.2 Trillion Off Asian Markets

Friday trading wiped more than $1.2 trillion off Asian stock markets, a rout that came on the heels of a US tech collapse which had destroyed about $3 trillion in market value the previous day.

Investors are now asking whether the AI surge is running out of momentum or merely experiencing a severe correction.

At least 42 countries worldwide have stock markets in BEAR MARKET territory.

🇵🇹 Portugal, PSI: −37.9%
🇸🇰Slovakia, SAX: −37.3%
🇹🇭 Thailand, SET: −20.9%
🇺🇦 Ukraine, PFTS: −64.5%
🇷🇺 Russia, MOEX: −42.6%
🇻🇳 Vietnam, HNX: −48.0%
🇹🇼 Taiwan, TAIEX: −20.5%
🇰🇪 Kenya, NSE 20:… pic.twitter.com/gtdYobahz2

— Coin Bureau (@coinbureau) November 6, 2026

Do All Four Major Asian Indices Now Qualify as Bear Markets?

An index is considered to be in a bear market once it falls at least 20% from its most recent high, a threshold generally reflecting profound investor pessimism.

At present, each of Asia's four largest market indexes is within that range, with the Nikkei, Kospi, TAIEX, and Hang Seng all sitting between 22% and 48% off their record highs.

Friday's session saw the Nikkei lose roughly 6%, marking its steepest one-day decline since April 2025. Meanwhile, Taiwan's 12.2% slide for the week was its largest since 1991. Prior to this, the most recent similar Asian downturn occurred in August 2024, when the Nikkei fell by 12.4%.

🚨 THE AI BUBBLE CRASH HAS STARTED IN ASIA.

Over $1.2 TRILLION has been wiped out from Asian stock markets today.

• Japan's Nikkei: -7.1%
• South Korea's Kospi: -8.8%
• Taiwan's TAIEX: -9.0%
• Hong Kong's Hang Seng: -1.8%

All four major Asian markets are now in a bear… pic.twitter.com/Lh4e8Pdrzf

— Crypto Rover (@cryptorover) November 6, 2026

Opinions among analysts are divided over the outlook. Dong Baozhen of Lingtong Shengtai told Reuters that AI share prices were based on “rosy illusions about the future.”

In the same vein, Theodore Shou of Yiyi Capital said to CNN that “there has been too much of a hype earlier this year.” Yet Jung In Yun of Fibonacci Asset Management maintains that demand for chips will keep expanding.

Could the AI Bubble Now Be Beginning to Pop?

The catalyst for the selloff originated on Wall Street, where Thursday's plunge wiped out roughly $3 trillion. Semiconductor shares bore the brunt of the losses.

Investor concern centered on the possibility that the Democrats' solid midterm performance might lead to stricter regulation of AI. Indeed, voters turned down data center initiatives in 39 of the 40 ballot measures that were completed.

“The theme we are watching most closely is AI scrutiny,” Vijay Valecha of Century Financial told The National. He anticipates further congressional hearings about who will shoulder the costs of the power-hungry data center buildout.

In the meantime, Goldman Sachs calculates that around 25% of intended data center capacity is located in Texas. Such a high concentration makes AI ventures susceptible to shifts in local politics.

Asia's strain is not limited to this week. The Institute of International Finance (IIF) said that emerging markets experienced $33.8 billion in portfolio outflows during October.

The IIF noted that only the COVID shock of 2020 and the Iran war shock in March resulted in larger outflows. Asian stocks were hardest affected.

Authorities are now attempting to contain the fallout. South Korea relaxed its margin requirements to prevent forced sales, and Chinese state-linked entities purchased equities.