Asian stock markets recorded a loss of over $1.2 trillion on Friday following a significant selloff in the United States that erased approximately $3 trillion in market value. Major Asian benchmarks, including the Nikkei, Kospi, TAIEX, and Hang Seng, are now trading between 22% and 48% below their recent peaks, officially entering bear market territory.
On Friday, the Nikkei index dropped by approximately 6%, marking its sharpest decline since April 2025. Taiwan’s TAIEX experienced a weekly decline of 12.2%, the largest drop recorded since 1991. These movements follow a broader trend where at least 42 countries worldwide have seen their stock markets enter a bear market phase.
Market analysts attribute the volatility to concerns over AI-related valuations and potential regulatory scrutiny. Data indicates that voters rejected data center proposals in 39 out of 40 ballot measures. Goldman Sachs notes that Texas currently hosts 25% of planned data center capacity, highlighting the vulnerability of AI projects to local political shifts.
Capital outflows from emerging markets reached $33.8 billion in October, according to the Institute of International Finance. This figure represents one of the largest outflows on record, surpassed only by the 2020 pandemic and the March Iran conflict. Asian equities were identified as the primary focus of these divestments.
In response to the market pressure, regional authorities have initiated stabilization measures. South Korean regulators eased margin requirements to mitigate forced selling, while state-backed entities in China have begun purchasing stocks to support market liquidity.
