Asia Crashes: Nikkei Falls 6% Into a Bear Market as KOSPI Halts Trading

Asia's stock markets crashed on Friday, November 6, 2026, as Wall Street's AI rout spread across the Pacific: Japan's Nikkei 225 closed down about 6% at 57,420.23, South Korea's KOSPI plunged more than 8% intraday and triggered a circuit breaker, and Taiwan fell more than 8%. The selloff followed Thursday's brutal U.S. session, when the Nasdaq sank 5.5% into a correction and chip stocks suffered their worst fall in years.

What happened in Asia on Friday?

Tokyo took the hardest hit among the major benchmarks. The Nikkei briefly fell more than 7%, dipping below 57,000, before recovering some ground by midday at 57,576.63, down 5.7%, and closing near a 6% loss. The broader Topix fell about 5.8%, a sign the selling had spread well beyond a handful of technology names. In Seoul, the KOSPI tumbled more than 8% to an intraday low near 4,911, triggering an exchange circuit breaker and a temporary trading halt, before paring losses after trading resumed. Elsewhere, Hong Kong's Hang Seng slipped about 1%, Shanghai fell about 1.1%, and Australia's ASX 200 lost about 0.7%. European stock futures fell about 1%, pointing to the rout spreading west when Europe opened.

Which Asian stocks were hit hardest?

The damage was concentrated in the chip and AI supply chain that Asia exports to the world. In Japan, Rohm tumbled about 20%, Furukawa Electric lost more than 19%, Resonac fell roughly 15%, and memory maker Kioxia plunged about 14%. AI investor SoftBank Group slid about 11%, and the cost of insuring against a SoftBank default jumped to its highest in four years. In South Korea, Samsung Electronics fell nearly 10% and SK hynix slid 11.7%. In Taiwan, TSMC was down 8.5%. These are not small speculative names — they are the backbone of global semiconductor and data-centre supply, which is why their simultaneous fall rattled investors worldwide.

Why is this blowing up?

Friday's crash was the second act of Thursday's Wall Street rout. The S&P 500 fell 4.36% to 7,353.73, the Nasdaq Composite sank 5.52% to 24,315.00 — now about 12% below its record close a month ago — and the Dow lost 3.44% to 51,523.06. The Philadelphia Semiconductor Index slumped 12.2%, about $3 trillion was wiped off S&P 500 companies, and Wall Street's volatility fear gauge soared. Investors fear that Democrats, who dominated this week's U.S. midterm elections, will increase regulatory scrutiny and slow the AI data-centre build-out, landing on an AI trade already questioned over whether enormous spending will earn adequate returns. Saxo chief investment strategist Charu Chanana, quoted by Reuters, pointed to panic and crowded positioning: when investors unwind the same trades at once, selling can become self-reinforcing, especially where leverage and forced liquidations are involved.

Why does the Nikkei's bear market matter?

At Friday's lows, the Nikkei was about 21% below its June 22 record intraday peak of 72,831.73. A fall of more than 20% from a peak is the conventional definition of a bear market, so Japan's benchmark crossing that line intraday turned a bad week into a landmark moment. The Nikkei is also unusually sensitive to big moves in its most expensive shares because of its price-weighted construction, but Friday's near-6% fall in the broader Topix showed this was not just a quirk of index maths — sellers were hitting the whole market, and buyers were stepping into government bonds instead.

What happens next?

The next test arrives Friday afternoon U.S. time with the October payrolls report, which traders see as the dial that decides whether Thursday was a one-day flush or the start of a deeper AI unwind. A soft jobs number could ease pressure around interest rates; a hot number could keep tighter-policy fears alive while growth stocks are already wounded. Brent crude near $100 a barrel adds another complication, reviving inflation concerns at the same moment central banks, including the Bank of England this week, have been raising rates. For now, futures pointed to only a fragile bounce attempt, not a repair of the damage.

Sources: Reuters via Duke FM, Invezz, AP via TradingView, Samuel & Co morning brief. This report is news coverage, not financial advice.

FAQ

Why did Asian stocks crash on November 6, 2026?

Asian markets followed Wall Street's steep Thursday fall, as fears of tighter U.S. scrutiny of AI data centres and doubts about returns on huge AI spending hit chipmakers and tech exporters across Japan, South Korea and Taiwan.

How much did the Nikkei and KOSPI fall?

The Nikkei closed down about 6% at 57,420.23 after falling more than 7% intraday. The KOSPI plunged more than 8% intraday, triggering a circuit breaker and trading halt, before paring some losses.

Is the Nikkei in a bear market?

Intraday on Friday the Nikkei was about 21% below its June 22 record peak of 72,831.73, crossing the conventional 20% bear-market threshold, although a closing level gives firmer confirmation.

What should investors watch next?

The U.S. October payrolls report due Friday, whether European and U.S. markets stabilise after futures fell, and whether chip stocks such as Samsung, SK hynix, TSMC and SoftBank stop falling.