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

What the report says

Global equity markets were under pressure on Friday as a tech-led selloff that started in the United States carried into Asian trading, according to Al Jazeera, which cited Reuters. The declines were tied to investor concern that recent political changes in the US could lead to tighter scrutiny of artificial intelligence and slow the build-out of data centres. Al Jazeera reported that markets were also reacting to wider worries about whether heavy spending on AI infrastructure will deliver strong returns.

In Asia, losses were sharp across major markets. Japan’s Nikkei fell 6 percent, while benchmarks in South Korea and Taiwan dropped more than 8 percent soon after the opening bell before recovering some ground. South Korea’s market authorities temporarily halted trading as prices fell, and the finance minister eased rules on leveraged retail investing. In China, state-linked buyers reportedly stepped in to support equities.

The selloff hit several major chip and AI-related companies, including Samsung Electronics, SK Hynix, TSMC, Kioxia and SoftBank Group. Taiwan’s market ended the day lower, and its weekly decline was described as the steepest in decades. Al Jazeera said the episode shows how quickly sentiment around AI-related stocks can shift when investors begin to question valuations, regulation and the pace of infrastructure spending.