{
  "id": 18424143,
  "title": "Post-US midterms AI worries pummel shares in Japan, South Korea",
  "url": "https://urgent.news/2026/11/06/post-us-midterms-ai-worries-pummel-shares-in-japan-south-korea",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-06T02:31:40.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/news/asia/east-asia/article/3373478/post-us-midterms-ai-worries-pummel-shares-japan-south-korea"
  },
  "original_language": "en",
  "account": "Japanese and South Korean stock markets experienced sharp declines on Friday as concerns over potential regulatory changes stemming from the US midterm elections impacted global tech shares. The Nikkei 225 index in Tokyo dropped 5.1% to 56,930 points in early trading, while the Kospi index in Seoul fell 8.5% to 4,923, triggering a 20-minute trading suspension to curb further losses. Despite initial optimism following the Democratic Party's victory over President Donald Trump's Republican Party, investors grew increasingly cautious about the potential implications for artificial intelligence (AI) data center investments.\n\nThe US tech sector, particularly the Nasdaq, bore the brunt of the sell-off, with the technology-focused index plummeting 5.5% in a severe sell-off. Nvidia and other semiconductor stocks suffered significant losses, marking the Nasdaq's worst percentage decline since April 2025. Memory chipmakers, essential for powering AI tools, also faced heavy selling in South Korea. Samsung Electronics plummeted nearly 10%, while SK Hynix saw a decline of over 11%. Japan's tech sector was not spared, with Tokyo Electron shares dropping around 9% and Kioxia shedding 13%.\n\nThe market downturn was fueled by concerns over stricter regulations on AI-related technologies following the US midterm elections. Online brokerage Monex attributed the sell-off to apprehensions about potential hurdles in data center construction projects, which are crucial for training and operating AI models. As governments and tech companies globally invest billions of dollars in data center construction, investors are wary that increased regulatory scrutiny could slow down these vital projects, impacting economic growth in the AI sector.",
  "summary": "Japanese and South Korean shares plunged on Friday after US shares tumbled overnight on worries that midterm election results could slow or derail the artificial intelligence data centre investment boom. Tokyo’s benchmark Nikkei 225 index fell 5.1 per cent to 56,930 points in early trade. Seoul’s Kospi index dived 8.5 per cent to 4,923, triggering a circuit breaker which suspended trading for 20…",
  "key_points": [
    "Japanese and South Korean stocks dropped 5.1% and 8.5% respectively after US midterm elections.",
    "Nasdaq suffered its worst percentage decline since April 2025 due to AI concerns.",
    "Semiconductor and memory chipmakers saw heavy losses, impacting AI data center investments."
  ],
  "editors_take": "The sudden volatility in Asian tech markets signals that US political shifts now act as a primary driver of global uncertainty for the massive capital investments required for artificial intelligence.",
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Nikkei Asia",
        "title": "Japan, South Korea stocks plummet as AI selloff accelerates",
        "url": "https://urgent.news/2026/11/05/japan-south-korea-stocks-plummet-as-ai-selloff-accelerates",
        "published": "2026-11-05T22:46:51.000Z"
      },
      {
        "outlet": "Hindu BusinessLine",
        "title": "Japan’s Nikkei plunges 5.7%, South Korea’s Kospi falls 7.4% amid AI stock rout",
        "url": "https://urgent.news/2026/11/06/japans-nikkei-plunges-5-7-south-koreas-kospi-falls-7-4-amid-ai-stock",
        "published": "2026-11-06T03:22:36.000Z"
      },
      {
        "outlet": "Times of India",
        "title": "Kospi tumbles over 7%, Nikkei sheds 3,000 points as AI-linked shares drag markets",
        "url": "https://urgent.news/2026/11/06/kospi-tumbles-over-7-nikkei-sheds-3-000-points-as-ai-linked-shares",
        "published": "2026-11-06T04:02:57.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}