Asian Markets Tumble as Nikkei Enters Bear Market on Tech Selloff

Asian stock markets fell sharply on Friday, with Japan's Nikkei entering a bear market, down over 20% from its peak, amid a global selloff of tech stocks linked to the artificial intelligence boom. The Nasdaq dropped 5.52% on Thursday in New York, its biggest daily loss since April 4, 2025. South Korea, Japan, and Taiwan led the losses, with chip and tech stocks following Wall Street's decline. The Democrats' broad victory in the U.S. midterm elections triggered the latest wave of selling, as fears of increased regulation could slow AI infrastructure expansion and reduce hardware demand, a sector where Asia is significant. The Kospi fell 6.02%, the Nikkei dropped 5.96%, and the Taiex lost 4.51%. SK Hynix fell 10.4%, SoftBank Group dropped nearly 11%, and TSMC lost 4.7%. Chinese and Hong Kong tech stocks also declined, while Australia's market fell 0.49%.