Asian stocks plunge as US AI selloff deepens

Asian stocks plunged Friday as fears of regulatory scrutiny and a slowing AI build-out triggered the steepest US market decline since April 2025. Japan's Nikkei fell 7 percent, while South Korea and Taiwan benchmarks dropped over 8 percent. AI chipmakers Samsung Electronics and SK Hynix fell nearly 10 percent and 12 percent respectively in South Korea. The Nasdaq sank 5.5 percent, wiping $3 trillion off S&P 500 firms, as investors worried Democrats' midterm wins would curb the AI boom. The selloff spooked retail investors and hedge funds, with some analysts calling it overdone and near capitulation. Investors sought refuge in bonds and the yen, while US 10-year Treasury yields hovered near their lowest level since September.