Asian stock markets experienced a severe selloff on November 6, 2026, with Taiwan's Taiex index declining approximately 9% during morning trading, marking a steep decline [1]. South Korea halted trading entirely amid the broader artificial intelligence sector rout [1]. The sharp declines were triggered by a tech sell-off on Wall Street overnight, combined with investor concerns about potential delays in data center construction [1]. The primary catalyst for the market turmoil was a sweeping Democratic victory in U.S. midterm elections, which raised investor fears about increased regulatory scrutiny and potential AI regulation that could impact infrastructure development [1]. Markets tied to the artificial intelligence boom were particularly hard hit, as investors reassessed the timeline and feasibility of major data center expansion projects that have been central to the AI investment thesis [1].
CONCLUSION
The sharp decline in Asian AI-linked stocks reflects growing investor anxiety about regulatory headwinds following the Democratic midterm victory, with particular concern focused on potential delays to critical data center infrastructure projects. The severity of the selloff—including Taiwan's steepest-ever fall and South Korea's trading halt—signals a significant repricing of AI sector valuations amid heightened policy uncertainty.