Asia stocks crumble after AI rout rocks US markets
SPY•SPY•SPY•SPY•Asian stocks plunged on Friday after concerns about regulation and slowing AI investment triggered the steepest fall in US stocks since the tariff-driven selloff a year and a half earlier. South Korea’s KOSPI fell more than 8%, Japan’s Nikkei dropped 5%, and the Philadelphia Semiconductor Index slumped 12.2%.
South Korea’s KOSPI plunged more than 8%, triggering a 20-minute trading halt, while Japan’s Nikkei fell 5%. The declines followed a selloff on Wall Street, where the Nasdaq sank 5.5% and $3 trillion was wiped off S&P 500 companies.
Investors are concerned about increased regulatory scrutiny and whether the enormous sums being spent on AI will generate sufficient returns. Chipmakers and data centre equipment suppliers in South Korea, Taiwan and Japan were seen as especially vulnerable; bonds were poised to gain in Asia, while the US dollar slipped against the yen and Swiss franc.
