Asian stocks slump as regional markets tracked a steep selloff in U.S. technology shares, with investors unnerved by mounting concerns over artificial intelligence spending and profitability.
Japanese and South Korean equities fell sharply on Friday. Tokyo’s Nikkei 225 dropped 5.5 percent in early trading, while Seoul’s Kospi slid as much as 8.8 percent, triggering a 20-minute circuit breaker halt. Taiwan’s TAIEX was also down more than 8 percent.
Semiconductor bellwethers were hit hard. Samsung Electronics fell nearly 10 percent and SK Hynix declined more than 11 percent. In Taiwan, Taiwan Semiconductor Manufacturing Company faced heavy selling. Chip-linked names in Japan also weakened, with Tokyo Electron down about 9 percent and Kioxia off 13 percent.
Futures pointed to further pressure in Europe, with contracts down about 1 percent, indicating the selloff could extend across regions.
Asian stocks slump as AI-linked selloff spreads from Wall Street
The retreat followed a sharp decline in U.S. markets on Thursday, led by companies tied to building AI infrastructure such as data centers. The Nasdaq fell 5.52 percent, erasing as much as 2.5 trillion dollars in market value, while the S&P 500 lost 4.4 percent.
Analysts said investors are questioning whether the scale of AI-related capital expenditure will translate into earnings. Political uncertainty also weighed after the U.S. midterm elections, in which Democrats won control of both chambers of Congress, adding to policy concerns for the sector.
Several Democratic governors-elect campaigned on slowing artificial intelligence development and vowed to halt or pause data center projects amid community pushback, according to campaign statements.
“It’s pretty clear there’s been a real shift in sentiment,” said Michael McCarthy, chief executive for Australia and New Zealand at brokerage Moomoo, adding that market turning points are often marked by large swings. “Last night’s emphatic sell-down suggests that is the direction that we’re now headed in.”