{"id":74234,"date":"2026-11-05T21:08:16","date_gmt":"2026-11-06T01:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-rout-and-us-election-fallout-trigger-asian-market-meltdown-japan-eyes-etf-windfall\/74234\/"},"modified":"2026-11-05T21:08:16","modified_gmt":"2026-11-06T01:08:16","slug":"tech-rout-and-us-election-fallout-trigger-asian-market-meltdown-japan-eyes-etf-windfall","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-rout-and-us-election-fallout-trigger-asian-market-meltdown-japan-eyes-etf-windfall\/74234\/","title":{"rendered":"Tech Rout and US Election Fallout Trigger Asian Market Meltdown; Japan Eyes ETF Windfall"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea\u2019s KOSPI index plummeted 8.5%<\/strong>, triggering a &quot;sidecar&quot; mechanism and circuit breakers as tech shares collapsed following a massive <strong>Nasdaq<\/strong> selloff.<\/li>\n<li><strong>Japan\u2019s Nikkei 225 fell over 5%<\/strong>, hitting its lowest level since April, led by double-digit losses in semiconductor and AI-related stocks like <strong>Tokyo Electron<\/strong> and <strong>Advantest<\/strong>.<\/li>\n<li><strong>Prime Minister Sanae Takaichi<\/strong> proposed using accelerated <strong>Bank of Japan (BOJ)<\/strong> ETF disposal revenue to fund vital economic security investments and public expenditure.<\/li>\n<li><strong>Texas Governor-Elect Gina Hinojosa<\/strong> announced plans for a moratorium on new data centers, citing the need for legislative protections for citizens and the state&#39;s power grid.<\/li>\n<li><strong>White House officials<\/strong> are convening for emergency assessments after a &quot;blue wave&quot; in the US midterm elections shifted control of Congress to Democrats.<\/li>\n<\/ul>\n<h2>Asian Markets Reel from Tech-Led Liquidation<\/h2>\n<p>Equity markets across Asia experienced a brutal session on Friday as a deepening technology selloff in the United States spread to regional heavyweights. The <strong>Korea Exchange (KRX)<\/strong> was forced to trigger a sidecar mechanism and a Stage 1 circuit breaker as the <strong>KOSPI 200<\/strong> futures plunged more than <strong>5%<\/strong>, eventually leading the main index to dive <strong>8.5%<\/strong> to <strong>4,923 points<\/strong>. This marks the first time the KOSPI has traded below the 5,000 level in nine months, driven by massive losses in chipmakers Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>), which fell <strong>10%<\/strong>, and SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>), which dropped over <strong>11%<\/strong>.<\/p>\n<p>In Tokyo, the <strong>Nikkei 225 (<a href=\"\/stock\/%5ENI225\">^NI225<\/a>)<\/strong> index shed <strong>5.1%<\/strong> to close near <strong>56,930<\/strong>, following the tech-heavy <strong>Nasdaq Composite&#39;s<\/strong> entry into correction territory. The rout was exacerbated by Japan Tobacco (<a href=\"\/stock\/2914\">2914<\/a>), which hit its daily lower limit as a wave of sell orders prevented trading. <em>Investors are increasingly anxious that a shift in US political power will lead to tighter regulations on artificial intelligence and a slowdown in data center expansion.<\/em><\/p>\n<h2>Takaichi Targets BOJ Windfall for Growth<\/h2>\n<p>Amid the market turmoil, Japanese Prime Minister <strong>Sanae Takaichi<\/strong> outlined a strategic plan to utilize the <strong>Bank of Japan&#39;s<\/strong> accelerated disposal of exchange-traded funds (ETFs). The central bank recently announced it would more than double its annual ETF sales to <strong>\u00a5860 billion ($5.5 billion)<\/strong> starting in January. Takaichi stated that the resulting revenue should be used to finance investments in areas vital to <strong>Japan&#39;s economic security<\/strong> and to help cover bond payments, thereby securing funding for public expenditure designed to stimulate the economic cycle.<\/p>\n<p>Finance Minister <strong>Satsuki Katayama<\/strong> confirmed that the government expects a substantial increase in payments from the BOJ&#39;s surplus earnings. Analysts estimate the faster sales pace could generate an additional <strong>\u00a5800 billion<\/strong> in annual revenue. <em>This non-tax revenue is seen as a critical pillar for Takaichi&#39;s broader agenda, which includes a 14-year growth investment plan and increased defense outlays.<\/em><\/p>\n<h2>US Political Shift Rattles Industry Sentiments<\/h2>\n<p>The global market volatility is closely tied to the fallout from the US midterm elections, where a <strong>Democratic victory<\/strong> has upended expectations for the tech and energy sectors. In the US, <strong>White House officials<\/strong> are reportedly meeting to determine a path forward following the Republican defeat. Meanwhile, House Democratic Leader <strong>Hakeem Jeffries<\/strong> has already begun asserting influence, demanding increased House participation and opposing the Senate&#39;s proposed energy permitting deal, according to <em>POLITICO<\/em>.<\/p>\n<p>The impact is being felt acutely in the data center industry, a key driver of AI growth. Texas Governor-Elect <strong>Gina Hinojosa<\/strong> has vowed to implement laws shielding citizens from the rapid expansion of data centers, calling for a moratorium on new approvals. <em>Hinojosa&#39;s stance, focused on protecting the state&#39;s power grid and water resources, has added a new layer of regulatory risk for major tech infrastructure projects.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea\u2019s KOSPI index plummeted 8.5%, triggering a &quot;sidecar&quot; mechanism and circuit breakers as tech shares collapsed following 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