Asian stocks plunge as AI selloff hits Japan and South Korea

Asian stock markets fell sharply on Friday, with Japan and South Korea leading a regional selloff as investors dumped technology shares amid concerns about artificial intelligence investments following the US midterm elections. The decline followed Wall Street's biggest daily drop in over a year on Thursday. South Korea's KOSPI triggered a 20-minute circuit breaker after falling 8.8% early, with Samsung Electronics down 4.1% and SK Hynix down 7%. Japan's Nikkei 225 fell over 20% from its June record high, entering bear market territory, while chip equipment maker Advantest and SoftBank Group led losses. US semiconductor stocks also tumbled, with Qualcomm dropping nearly 10% on weak smartphone chip sales. Democratic gains in the midterm elections raised concerns about increased scrutiny of data center development, potentially slowing construction. Taiwan's Weighted index fell 4.1%, China's Shanghai Composite dropped 1%, and oil prices recovered after early-week losses as investors weighed uncertainty over President Donald Trump's next steps regarding Iran.