Asian markets plunge on US tech selloff and AI investment fears

Asian markets plunged Friday following a US tech-led selloff, driven by fears that newly elected Democratic officials could hinder the AI investment boom that has propelled global stocks to record highs. South Korea’s Kospi dropped over 8%, triggering a trading halt, while Japan’s Nikkei 225 fell about 6% and Taiwan’s Taiex declined roughly 8%. Asian tech firms, crucial to the global electronics supply chain, have benefited from surging demand for semiconductors used in AI data centers. US giants like Meta, Amazon, and Google, known as "hyperscalers," have heavily invested in AI infrastructure, with a Columbia Business School study linking nearly all US GDP growth to such spending. However, backlash over data centers' environmental impact made AI spending a key midterm issue, and Democrats' sweeping victory now raises concerns they may slow new infrastructure projects.