Asian stocks plunge as US AI selloff sparks global rout

Asian stocks tumbled Friday as fears of increased regulatory scrutiny and a slowdown in AI infrastructure spending triggered the steepest US market decline since April 2025's tariff-driven selloff. Japan's Nikkei fell 7% at the open, while South Korea and Taiwan benchmarks dropped over 8%. The rout followed a 5.5% Nasdaq decline and $3 trillion loss in S&P 500 value, driven by investor concerns that Democrats' midterm election victory could curb AI growth. Chipmakers Samsung, SK Hynix, and TSMC fell sharply, while AI investor SoftBank slid 11%, with analysts citing panic selling and forced liquidations. European markets opened lower as the selloff spread globally. Some analysts suggested the downturn may near its end, noting TSMC's circuit breaker triggered, often signaling capitulation, though concerns remain over smaller firms' funding amid high interest rates and data centre opposition.