Why it matters
- South Korea's Kospi fell 300 points, or 5.28%, to 5,383.80 on Thursday, Nov. 5, Yahoo Finance data showed. SK hynix fell 9.46% and Samsung Electronics 7.57%.
- Trading Economics said investors feared a Democrat-led U.S. Congress could tighten rules on AI data centers. Japan's Nikkei 225 fell 1.79% and Taiwan's Taiex 3.20%.
- Hong Kong's Hang Seng rose 3.67% to a five-week high and Australia's ASX 200 gained 2.61% to a two-month high, as Wall Street's rally and lower oil lifted other markets.
Session recap: what happened in this region's trading day, with sources.
Asian chip stocks sold off on Thursday, Nov. 5, while Hong Kong and Sydney rallied. South Korea's Kospi fell 300 points, or 5.28%, to 5,383.80, according to Yahoo Finance data, as memory-chip makers sank on worries about tighter AI rules in the United States. Hong Kong's Hang Seng jumped 3.67% to 24,796.98, a five-week high, Trading Economics said.
| Market | Thursday close | Change vs. Wednesday, Nov. 4 |
|---|---|---|
| Kospi (South Korea) | 5,383.80 | −300.00 (−5.28%) |
| Nikkei 225 (Japan) | 61,077.90 | −1,110.73 (−1.79%) |
| Taiex (Taiwan) | 41,574.72 | −1,374.19 (−3.20%) |
| Hang Seng (Hong Kong) | 24,796.98 | +877.48 (+3.67%) |
| Shanghai Composite (China) | 3,689.91 | +3.74 (+0.10%) |
| Shenzhen Component (China) | 11,471.09 | +135.40 (+1.19%) |
| S&P/ASX 200 (Australia) | 9,065.10 | +230.60 (+2.61%) |
| Sensex (India) | 79,310.01 | +2,008.61 (+2.60%) |
| Nifty 50 (India) | 24,536.60 | +576.00 (+2.40%) |
Source: Yahoo Finance chart data.
Why did the Kospi fall today?
The Kospi fell because chip stocks sank on fears of tighter U.S. rules on artificial intelligence. Trading Economics said investors worried that a Democrat-led Congress could impose stricter rules on AI data centers, which could raise power grid costs and delay permits. The selling came even though Wall Street rallied overnight. The PHLX Semiconductor Index fell 3.13% on Wednesday, Yahoo Finance data showed.
SK hynix fell 9.46% and Samsung Electronics 7.57%, Yahoo Finance data showed. Hanwha Aerospace dropped 7.48% and Doosan Enerbility 6.45%. The Kospi was the weakest major market in the region.
Why did the Nikkei fall?
Japan's Nikkei 225 fell for a fourth straight session as technology stocks dropped on AI concerns, Trading Economics said. Furukawa Electric fell 17.06%, Ibiden 16.31%, Advantest 14.71% and Kioxia 13.14%, Yahoo Finance data showed. Investors rotated into consumer and financial shares. Fast Retailing rose 4.72%, Nintendo 6.31% and Mitsubishi UFJ 2.65%.
Toyota Motor jumped 16.68% after it raised its annual earnings forecast, helped by a weaker yen and cost cuts, Trading Economics said.
Why did Hong Kong stocks rise?
The Hang Seng rose on hopes of a push to end the Middle East conflict after the U.S. midterms, lower oil prices, lower U.S. Treasury yields and Wall Street's rebound, Trading Economics said. It also cited Beijing's support. State-backed funds reportedly put about $11.5 billion into nine ETFs, and applications for central bank-backed buyback loans topped 200 billion yuan. Meituan, Tencent, Xiaomi and Alibaba led the gains, it said.
In mainland China, battery and EV makers led, and CATL rose 4.42%, Yahoo Finance data showed. Energy stocks fell with oil; Trading Economics said PetroChina dropped about 8%.
How did Australia and Taiwan trade?
The ASX 200 rose 2.61% to a two-month high, Trading Economics said, as miners and tech stocks rallied and energy fell. NextDC jumped 50.84%, BHP rose 6.19% and Rio Tinto 6.98%, while Woodside Energy fell 6.02% and Santos 5.41%, Yahoo Finance data showed. In Taipei, MediaTek fell 6.86% and TSMC 0.88%.
Wednesday's session is in our Asia Wednesday recap, and the U.S. rally that followed is in our Americas Wednesday recap. Today's European session is in our Europe Thursday recap.
Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.
Sources
- Trading Economics, South Korea stock market (Kospi)
- Trading Economics, Japan stock market (Nikkei 225)
- Trading Economics, Hong Kong stock market (Hang Seng)
- Trading Economics, China stock market
- Trading Economics, Australia stock market (ASX 200)
- Yahoo Finance, chart data for the Kospi, Nikkei 225, Taiex, Hang Seng, Shanghai Composite, Shenzhen Component, S&P/ASX 200, Sensex, Nifty 50, PHLX Semiconductor Index, SK hynix, Samsung Electronics, Hanwha Aerospace, Doosan Enerbility, Furukawa Electric, Ibiden, Advantest, Kioxia, Fast Retailing, Nintendo, Mitsubishi UFJ, Toyota, CATL, NextDC, BHP, Rio Tinto, Woodside Energy, Santos, MediaTek and TSMC