06/11/2026
Asian equities tumbled at the open following a sharp post-election rout among U.S. chipmakers, as investors grew concerned that Democrats would push for stricter regulation across the artificial intelligence sector.
South Korea’s tech-heavy KOSPI plunged as much as 8.8% in early trade, triggering a circuit breaker, with chip giants Samsung Electronics and SK Hynix both down more than 9%. Japan’s Nikkei 225 fell 5.5% and the MSCI Asia Pacific Index dropped 2.5%. Futures pointed to opening losses for Taiwan, Hong Kong and mainland Chinese markets.
On Thursday, the S&P 500 slumped 4.4%, its worst session since the tariff crisis in April 2025. The Nasdaq 100 lost 6.4%, wiping out $2.3 trillion in market value for its largest one-day drop since March 2020. The closely watched chip gauge crashed 12%, led lower by Nvidia, Qualcomm and Arm. Still, Nasdaq futures climbed 0.7% in early Asian trade, hinting at tentative stabilization.
Elsewhere, the U.S. dollar weakened against most G10 currencies, while U.S. Treasuries held onto Thursday’s gains. U.S. crude oil climbed above $91 a barrel after rallying 2.7% in the prior session.
Global financial markets have swung wildly this week. Investors initially bet that a strong Democratic showing in the midterms would speed up an end to the Iran conflict, but worries over tighter oversight for data centers have since dominated sentiment. The Philadelphia Semiconductor Index has slumped nearly 16% week-to-date, on track for its worst weekly performance since April last year.
Data-center developers in Texas face major headwinds: newly elected Democratic Governor Gina Hinojosa has called for an immediate moratorium on new data-center projects. Her victory, alongside other Democratic gubernatorial wins, could subject roughly half of the nation’s planned AI data-center projects to tougher local scrutiny and pushback.
The scale of the collapse has flooded Goldman Sachs’ equity trading desk with calls from investors asking how much longer the selloff might last. According to John Flood, the bank’s head of Americas equities execution services, genuine buyers have stayed on the sidelines and long-only funds are once again stuck in a standoff.
Within Asia, Samsung Electronics, SK Hynix and TSMC bore the brunt of the AI-driven liquidation. Hong Kong stocks, by contrast, saw a rotation bounce as investors exited AI supply-chain shares in favour of undervalued Chinese internet platforms.
On the economic front, Labor Department figures showed initial jobless claims came in below all forecasts. Investors are waiting for Friday’s U.S. nonfarm payrolls report for fresh signals on the interest-rate outlook.
Cleveland Fed President Beth Hammack said rates need to remain restrictive to bring inflation back to the central bank’s target, and more frequent policy adjustments could reduce risks from monetary lags.
[Disclaimer] Forex trading involves risk; please invest with caution. This content is for informational purposes and objective analysis only, and does not constitute any investment advice, basis for buying/selling, or guarantee of returns. Investors should make independent decisions based on their own financial situation and risk tolerance, and bear their own investment risks.
Related Posts
