Global Market Today: Asian stocks join US selloff as AI slump deepens
South Korea’s tech-heavy Kospi Index slid 8.8% in early trading, triggering a circuit breaker, with chipmakers Samsung Electronics Co. and SK Hynix Inc. both plunging more than 9%. Japan’s benchmark Nikkei 225 Stock Average lost 6.2%, while the MSCI Asia Pacific Index declined 2.9%. Futures pointed to losses in Taiwan, Hong Kong and China.
Asian stocks plummeted early on Friday, following a steep decline on Wall Street driven by concerns about potential stricter regulation of the artificial intelligence industry under newly elected Democratic leadership. South Korea's tech-heavy Kospi Index fell 8.8% in early trading, while Japan's Nikkei 225 and the MSCI Asia Pacific Index both dropped 6.2% and 2.9% respectively. The S&P 500 suffered its worst performance since April 2025, losing 4.4%, and the Nasdaq 100 shed 6.4%, erasing $2.3 trillion in market value.
The sharp decline in chipmakers' stocks, including Nvidia Corp., Qualcomm Inc., and Arm Holdings Plc, highlighted the extent of the slump. These technology giants are seen as critical to the future of AI development. As markets seemed to stabilize slightly, futures on the Nasdaq 100 Index rose 0.3%.
Investors are bracing for further volatility, as the political landscape shifts and policy risks surrounding AI regulation take center stage. Analysts suggest that there may be more downside for the chip and equipment sectors before any recovery gains traction. Meanwhile, the weakening US dollar and stable Treasury yields indicated market uncertainty amid these developments.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
