Asia stocks tumble after AI rout rocks US markets
SPY•Asian stocks fell sharply Friday, with South Korea’s benchmark down more than 8%, after US markets suffered their steepest decline since April 2025. The Nasdaq sank 5.5%, wiping $3 trillion off S&P 500 firms, as investors worried about AI regulation and spending returns.
1. Asian stocks slide
Japan’s Nikkei fell 7% after the opening bell, while South Korean and Taiwanese benchmark indexes dropped more than 8% before regional stocks appeared to stabilise. Samsung Electronics and SK Hynix fell nearly 10% and 12%, respectively; TSMC dropped as much as 8.5%.
2. AI concerns weigh
Investors worried that Democrats’ midterm election gains could bring greater scrutiny of AI, while doubts about returns on large AI infrastructure investments added pressure. The Nasdaq fell 5.5% overnight and was down 12% from its record close a month earlier. CoreWeave slid 10%, and its five-year credit default swap spreads widened to a record.
3. Bonds gain favour
Government bonds in the United States, Japan and China rose, while the US dollar weakened against the yen and Swiss franc. The US 10-year Treasury yield stood at 4.838%, near its lowest level since September 9.
