Asian Stocks Tumble After $3 Trillion US Wipeout as SK hynix Leads KOSPI Rout — Mohamed El-Erian Says 'When the Nasdaq Sneezes...'

Asian markets tumbled Friday as a sharp selloff in U.S. technology stocks spread to chipmakers across the region, with investors weighing concerns that tighter U.S. oversight of artificial intelligence and data-center construction could slow the industry’s expansion.

KOSPI and Nikkei Take the Hit

South Korea’s KOSPI plunged more than 8% in early trading, triggering a circuit breaker before paring some losses. Japan’s Nikkei 225 fell around 6%, while Taiwan’s TAIEX also suffered heavy losses.

Memory chipmakers led the rout in Seoul, with SK hynix Inc. (NASDAQ:SKHY) plunging 9.41% to KRW 1.15 million ($843.88) and Samsung Electronics Co. Ltd. sliding 5.66% to KRW 190,100 ($140.11)

In Taiwan, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) fell 4.46% to TWD 2,140 ($64.96). The country’s benchmark TAIEX index was down 3.83%. On Thursday, TSMC’s NYSE-listed stock fell 10.78%.

“When the Nasdaq sneezes…,” economist Mohamed El-Erian said on X, as South Korean and Japanese stocks followed it lower.

When the Nasdaq sneezes…
The South Korean and Japanese stock markets tumble 6% in the wake of the US selloff.#markets #stocks #japan #korea #investing #investors

— Mohamed A. El-Erian (@elerianm) November 6, 2026

US Chip Stocks Lead the Slide

On Wall Street, the Nasdaq 100 had its largest one-day drop since the 2020 pandemic Thursday, and the S&P 500 lost about $3 trillion.

The iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:SOXX) slumped 12.15% to close at 131.90, but was trading 2.95% higher in overnight trading.

Nvidia Corp. (NASDAQ:NVDA) wiped out nearly $450 billion in market value, falling more than 9%. Advanced Micro Devices Inc. (NASDAQ:AMD) dropped 17.26%, and Micron Technology Inc. (NASDAQ:MU) fell 17.46%.

KOSPI’s Memory Boom Rides on U.S. Cloud Budgets

SK hynix and Samsung account for more than half of the KOSPI’s weight, and a rout in memory chips drags the entire index lower.

Their boom depends on what U.S. cloud companies spend, and Democrats’ midterm win has put that spending under political pressure with new calls for data center moratoriums.

Price Action: SK Hynix’s Nasdaq-listed ADRs tumbled 13.40% on Thursday to close at $123.90, then rose 2.25% in overnight hours to $126.69. Since its July listing, it has fallen 27.12%.

Benzinga Edge rankings show SK Hynix’s ADRs have a Growth score in the 98th percentile and a Value score in the 61st percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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