Major Tech Sell-Off Grips Global Markets
Stock markets across Asia experienced a sharp downturn on Tuesday, 18th November 2025, mirroring a significant tech-led sell-off that originated on Wall Street. Benchmarks in major financial hubs like Tokyo and Seoul plummeted by more than 3%, signalling a wave of investor pessimism sweeping across the region.
Nvidia and AI Stocks Trigger Widespread Declines
The sell-off was primarily triggered by a pullback in U.S. technology shares, with a particular focus on artificial intelligence (AI) companies. Nvidia, the computer chip giant at the heart of the AI boom, saw its shares drop by 1.8% ahead of its eagerly anticipated earnings report on Wednesday. This decline fuelled existing worries that the stock prices of AI-focused companies had become overvalued.
Other prominent AI players also suffered heavy losses. Super Micro Computer slid by 6.4%, contributing to the negative sentiment. The ripple effects were felt acutely in regions with a heavy reliance on the computer chip trade. In Tokyo, the Nikkei 225 was down 3% at 48,835.20 by midday, with chip-related firms like Tokyo Electron and Advantest shedding 5.4% and 4.6% respectively.
The situation was similar in South Korea, where the Kospi fell 3.1% to 3,960.82. Samsung Electronics dropped 2.9%, while chip maker SK Hynix saw a significant decline of 5.7%. In Taiwan, the Taiex fell 2.3% as TSMC, the world's largest contract chip manufacturer, declined by 2.4%.
Broader Economic Concerns and Market Impact
Beyond the immediate tech slump, other economic factors are adding to market uncertainty. In Japan, the yield on 30-year government bonds surged to 3.31%, reflecting investor concerns over rising risks as the government plans to increase spending. The yen was trading above 155 to the U.S. dollar, near its highest level since February.
All major regional markets felt the chill. Hong Kong's Hang Seng declined 1.5%, and the Shanghai Composite index slipped 0.6%. Australia's S&P/ASX 200 gave up 2.1%. This followed a poor session in the U.S., where on Monday the S&P 500 fell 0.9%, the Dow industrials dropped 1.2%, and the Nasdaq composite sank 0.8%.
Further adding to the cautious mood is the delayed release of U.S. employment data, now due on Thursday. This data is crucial for the Federal Reserve's decision on interest rates. A strong report could deter the Fed from cutting rates, while weak figures would raise fresh alarms about the health of the economy.
In early Tuesday dealings, U.S. benchmark crude oil lost 42 cents to $59.49 per barrel, and the dollar fell to 155.08 Japanese yen.
