Tech stock rout, driven by US AI fears, continues in Asian trading

The technology stock rout that began in the United States continued in Asian markets on Friday, amid fears that the Democrats’ midterm election victory could bring tighter AI regulation and slow data centre construction. Japan’s Nikkei fell 6 percent, while South Korean and Taiwanese indexes dropped more than 8 percent before recovering some losses; South Korean authorities paused trading. On Wall Street, the Nasdaq sank 5.5 percent, wiping $3 trillion off S&P 500 companies’ market value. Analysts said political jitters were compounding concerns about returns on massive investments in AI-related infrastructure.