Nikkei Falls 6% on Friday as Asian Markets Tumble in Worst Week Since 2020
Direct answer
Japan’s Nikkei 225 fell about 6% on Friday, November 6, 2026, closing at 57,434.77. It was the index’s worst week since March 2020, down 9.3% for the week, and more than 20% below its June peak, which puts it in bear market territory. South Korea and Taiwan fell hard on the same day as the AI sell-off spread across Asia.
What happened
The Nikkei closed down 3,643.13 points, or 5.96%, at 57,434.77, Reuters reported. It was the index’s biggest one-day fall since April 2025, and it dropped below 60,000 for the first time since May. The fall was broad: 222 of the 225 stocks in the index fell, and only 3 rose. For the week, the Nikkei lost 9.3%, its worst weekly performance since March 2020, when the Covid pandemic shook markets.
South Korea’s Kospi fell 6.02% on Friday after dropping more than 8% during the morning session, which triggered a brief trading halt. South Korea’s government called an emergency meeting on market conditions after trading resumed.
Taiwan’s TAIEX fell 4.51% on Friday. Asian markets lost about $1 trillion to $1.2 trillion in value in a single day, according to market reports.
Chipmakers led the fall. SoftBank fell about 11% and chip testing equipment maker Advantest fell about 12% in Tokyo. In South Korea, memory chip makers SK Hynix fell 10% and Samsung fell 6%, while Taiwan’s TSMC, the world’s leading advanced chipmaker, ended the day down 4.7%.
The trigger was Thursday’s rout on Wall Street. The S&P 500 fell 4.3% in its worst day since April 2025, the Nasdaq dropped 5.5%, and the Dow lost 1,833 points, wiping more than $3.2 trillion from US share values. Our post on the S&P 500 plunge explains that day in full: https://investclaritypath.com/sp-500-plunges-worst-day-since-april-2025-nasdaq-correction/
Investors fear the Democratic sweep of Congress in Tuesday’s midterm elections could bring tighter rules on artificial intelligence and slow the building of data centers. They are also questioning how much big technology companies are spending on AI, and how quickly that spending turns into profit. Asia’s chipmakers sit at the center of that worry, because they supply the chips and equipment the AI boom runs on.
US stocks steadied later on Friday, with the Nasdaq rising 1.09% as chip stocks bounced back, which our post on AMD’s 11% jump covers here: https://investclaritypath.com/amd-shares-jump-11-percent-chip-stocks-rebound-november-2026/ But Asian markets had already taken the hit earlier in the day, because Tokyo, Seoul and Taipei trade hours ahead of New York.
Why it matters for beginners
A bear market usually means a fall of 20% or more from a recent peak. The Nikkei has now crossed that line from its June peak, while a correction is a smaller fall of at least 10%. These labels describe how far prices have fallen, not what happens next.
The fall also shows how connected markets are. A bad day on Wall Street can turn into a bad day in Tokyo, Seoul and Taipei overnight, because the same worry, in this case AI spending, hits the same companies in every market.
It also shows why spreading risk matters. Asia’s markets are heavy in chipmakers, so they fell hardest. Indexes with less exposure to technology held up better in the same week.
For beginners, the key lesson is the same as after any sharp fall: one bad week does not decide the long term. The Nikkei had risen strongly into June before this drop, and markets have recovered from steep falls before. A single day’s move, up or down, is not the whole story.
What to watch next
Watch US markets on Monday to see whether Friday’s rebound holds or sellers return. Nvidia reports its fiscal third quarter results on November 17, and that is now the next big test for AI spending. The October US inflation report lands on Tuesday, November 10, and a hot reading could lift the odds of a Federal Reserve rate rise in December. Also watch what Democratic leaders in Congress say about data center rules, and whether Japan’s government takes any step after saying it is closely monitoring the volatility.
FAQ
What is the Nikkei 225?
The Nikkei 225 is Japan’s main stock market index. It tracks 225 large companies listed on the Tokyo Stock Exchange, and it is heavily weighted toward technology companies.
What is a bear market?
A bear market is usually a fall of 20% or more from a recent peak. The Nikkei is now more than 20% below its June peak, so it has entered bear market territory. A correction is a smaller fall of at least 10%.
Why did Asian stocks fall so far on Friday?
They followed Wall Street’s sharp fall on Thursday, and Asia’s markets are heavy in chipmakers and AI suppliers, which were the hardest hit. When investors doubt AI spending, those stocks fall first.
What is a trading halt?
A trading halt, also called a circuit breaker, is a short pause in trading when an index falls very fast. It gives investors a moment to calm down before trading resumes. South Korea’s Kospi triggered one on Friday morning after falling more than 8%.
Does this fall mean I should sell my investments?
No. A fall by itself is not a reason to sell. Beginners should focus on their goal and their time horizon, and whether they can leave money invested through falls as well as rises, rather than reacting to one day of selling.
Sources
Reuters, via Maaal, Nikkei Index Records Worst Weekly Performance in 6 Years, November 6, 2026: https://maaal.com/en/news/details/nikkei-index-records-wors/
Associated Press, Global Shares Skid After AI Worries Send Wall Street Tumbling, November 6, 2026: https://www.dtnpf.com/agriculture/web/ag/news/world-policy/article/2026/11/06/global-shares-skid-ai-worries-send
Finimize, Your Daily Brief For November 7th, November 7, 2026: https://finimize.com/content/your-daily-brief-for-november-7th-2026
This article is for general information and education only. It is not legal or financial advice.
