Asian AI stocks plunge as Tokyo, Seoul, and Taipei markets tumble

Asian markets heavily exposed to artificial intelligence plunged at Friday's open, following a sharp selloff on Wall Street triggered by fears of tighter regulation and reduced AI investment under the Democratic midterm election victory. South Korea's Kospi fell over 8% before recovering to a 7% loss, triggering a circuit breaker, while Japan's Nikkei dropped 6% and Taiwan's index slid more than 8%. Major tech stocks were hit hard, with Samsung losing nearly 10%, SK Hynix down 11.7%, and TSMC falling 8.5%, while India's exchanges rose 2.4% in contrast. The selloff, which erased $3 trillion in S&P 500 market value, reflects investor panic over political risks and doubts about AI investment returns, with forced liquidations and leverage amplifying the correction, according to Saxo strategist Charu Chanana.