Asian Benchmarks Decline After AI Worries Send Wall Street Tumbling
AI chipmakers led the sell-off as investors worried Democrats may slow data-center construction and regulatory scrutiny grows, with the Nasdaq entering correction territory.
- Asian stock markets tumbled Friday following a widespread sell-off of AI-related stocks on Wall Street; Japan's Nikkei slipped 6.2% and South Korea's Kospi dropped 7.1%.
- The Dow Jones Industrial Average sank 3.4% Thursday, its worst day since President Donald Trump introduced Liberation Day tariffs in April 2025, driven by concerns that high borrowing costs for AI data centers may slow construction.
- Nvidia fell 9.3%, Advanced Micro Devices tumbled 17.3%, and GE Vernova sank 7.5%, as critics argued that AI-related stock prices had shot too high and were in a bubble.
- The 10-year Treasury yield fell to 4.84% from 4.90% late Wednesday as investors sought safer assets, while Brent crude gained 3.88% to $98.29 a barrel.
- Uncertainty persists regarding the war with Iran and the global energy industry, while market analysts note that a loss of more than 10% qualifies as a correction for stock markets.
72 Articles
72 Articles
Japan's Nikkei tumbles 6.16%, South Korea's Kospi falls 5.54% as SoftBank loses 10.4% and TSMC drops 4.7%
Ekstra Bladet
Japan's Nikkei 225 index and South Korea's Kospi index both fell 6 percent on Friday
Asia stocks tumble after AI rout rocks US markets
A rout in Asia's tech-heavy markets deepened today as fear of increased regulatory scrutiny and a slowdown in AI build-out precipitated the steepest decline in US stocks since the tariff-triggered "Liberation Day" selloff in April 2025.
Asian stock markets fell sharply on Friday, led by technology stocks. They were hit by concerns about the possible overvaluation of artificial intelligence (AI)-related stocks and tighter regulations in the sector after the Democratic victory in the US, which was behind Thursday's decline in US markets. Chipmakers are losing ground as US voters show strong opposition to the construction of data centers.
Asia's major stock exchanges fell by nearly 9% this Friday in what analysts consider the worst collapse since 2020, motivated by the artificial intelligence sector (AI) in fear that the Democratic Party's victory in the United States threatens the rise of this technology and investment in data centers.
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