Asia stocks crumble after AI rout rocks US markets
Asia's tech-heavy markets sank on Friday as fear of increased regulatory scrutiny and a slowdown in AI build-out unleashed the steepest fall in US stocks since the tariff-triggered "Liberation Day" rout a year and a half ago.
Asia's tech-heavy markets experienced a significant decline on Friday due to concerns over regulatory scrutiny and the slowdown in AI development. South Korea's KOSPI fell more than 8%, prompting a trading halt for 20 minutes, while Japan's Nikkei dropped 5%. The Nasdaq suffered a 5.5% decline, and Wall Street's volatility gauge surged.
The Nasdaq lost 12% of its value since its record high a month ago, with the Philadelphia Semiconductor Index plummeting 12.2%. Analysts speculate that investors are factoring in the potential costs and opposition to building data centers in Asia. The regional markets are particularly sensitive to the AI boom, as Asian chipmakers and data center equipment suppliers are seen as especially vulnerable.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Asia stocks crumble after AI rout rocks US markets straitstimes.com
