Asian markets slide as AI selloff hits Japan and South Korea

Asian markets collapsed on Friday, with Japan and South Korea leading a regional decline as investors sold technology stocks amid concerns about artificial intelligence investments following the US midterm elections. The rout followed Wall Street's worst daily drop in over a year on Thursday. South Korea's KOSPI fell up to 8.8% in early trading, triggering a 20-minute circuit breaker, while Japan's Nikkei 225 dropped over 20% from its June record, entering bear market territory. Chipmakers including Advantest, Kioxia, and Samsung Electronics led losses, following weak Qualcomm earnings and worries about AI infrastructure returns. Taiwan's Weighted index fell 4.1%, while Chinese and Hong Kong markets saw smaller declines. Democratic gains in the midterms raised concerns about increased scrutiny of data center developments. Oil prices extended gains as investors weighed uncertainty over President Donald Trump's next move regarding Iran.