Asian stock markets weakened during Tuesday’s trading session (November 3, 2026), following pressure on Wall Street driven by a sell-off in U.S. technology stocks. The MSCI Asia Pacific Index fell 0.5%, while South Korea’s KOSPI plummeted by more than 3%. This downturn follows a decline of up to 12% in U.S. chipmaker stocks over the past three trading sessions. The Nasdaq 100 Index has also corrected by 10% from its peak, signaling that the market has entered a technical correction phase.
Pressure on tech stocks has intensified due to investor concerns regarding the high costs associated with developing artificial intelligence (AI). Several major technology firms—including Microsoft, Meta, Oracle, and Alphabet—are once again seeking funding through the bond market to support their investments. This has raised questions about whether these companies can generate profits commensurate with the massive capital poured into AI development.
Meanwhile, global oil prices saw a sharp decline following signs that a peace agreement between the U.S. and Iran might be within reach. Brent crude plunged 7.6% to US$104.77 per barrel after both nations signaled a positive outlook for continued negotiations. U.S. President Donald Trump noted progress in diplomatic efforts, while the Iranian government has been granted broader authority to conduct negotiations. While lower oil prices could potentially ease global inflationary pressure, they have yet to restore investor appetite for technology stocks.
Market attention has now shifted toward a series of U.S. economic data points that could dictate the direction of financial markets. U.S. manufacturing activity showed improvement in October, and investors are now awaiting the JOLTS job openings report, weekly jobless claims, and the Non-Farm Payrolls (NFP) employment data. This set of data will serve as a key indicator for assessing the strength of the U.S. economy, while also helping to gauge the future direction of the Federal Reserve’s (The Fed) interest rate policy.