Asian markets plunge as AI selloff hits US stocks, Kospi drops 8%

Asian markets crashed Friday as US stocks suffered their steepest decline since April 2025, driven by fears of AI spending slowdowns and political uncertainty. South Korea's KOSPI plunged over 8 percent, triggering a circuit breaker, while Japan's Nikkei fell 6 percent and Taiwan's market dropped more than 8 percent. The selloff followed a 5.5 percent Nasdaq decline that erased $3 trillion from S&P 500 companies, with investors worried Democrats' midterm election gains could tighten AI regulation. Major chipmakers tumbled, including Samsung Electronics down nearly 10 percent, SK Hynix sliding 11.7 percent, and TSMC falling 8.5 percent, while AI investor SoftBank dropped 11 percent. Analysts cited panic selling and forced liquidations amplifying the downturn, with concerns about AI infrastructure costs and local opposition to data centers. European stock futures fell 1 percent, signaling the rout may spread, while Treasury yields hovered near September lows as investors sought safe havens.