Asian stocks slide as Nikkei falls 5.7% and Kospi drops 7.4% on AI sell-off

Asian stock markets fell sharply on Friday, November 6, after a sell-off in artificial intelligence stocks on Wall Street. Japan's Nikkei lost 5.7%, while South Korea's Kospi dropped 7.4%.

What happened

The declines followed the AI-related sell-off in the United States, where Nvidia shares plunged. Asian investors reacted to that move at the start of the regional session. The two benchmarks recorded some of the steepest losses reported in the region.

The Kospi fell more than the Nikkei, with the 7.4% drop outpacing the 5.7% decline in Tokyo. Both indexes are heavily linked to the technology and semiconductor supply chain, which helps explain how quickly the Wall Street move spread across the region.

Why it matters

The moves show how closely Asian equity markets track sentiment toward AI-related companies in the United States. Nvidia is among the best-known names in that group, so a sharp fall in its shares can quickly affect stocks in other markets. Declines of this size in two major national indexes in one session point to broad selling rather than a move limited to a few shares.

The episode also shows how a concentrated theme can transmit stress across time zones. When a sell-off begins on Wall Street, Asian exchanges are the first to open and respond. For investors, the key point is that exposure to the same technology theme can lead to losses in several markets at the same time.

What to watch next

Attention turns to Europe later on Friday. At 10:00 UTC, the euro area is due to publish retail sales for September. The annual figure carries an estimate of 0.6%, against a previous reading of 0.8%. The monthly figure has an estimate of -0.1%, against a previous reading of 0.1%.

The data will give a view of consumer demand in the euro area, but European markets will also be assessed on how they respond to the sell-off in Asia and the United States. Whether the pressure on AI-linked shares continues is the main question for the next sessions. Investors will follow how Nvidia and other technology names trade once Europe and Wall Street open.