Asian stocks plunge as US election fears hit AI investments

Asian stock markets plunged on Friday following a sharp US selloff driven by fears that Democratic midterm election victories could slow artificial intelligence investment. Tokyo's Nikkei 225 fell 5.1%, while Seoul's Kospi dropped 8.5%, triggering a trading halt. The US Nasdaq fell 5.5% on Thursday, its worst session since April 2025, as investors worried Democrats might tighten regulation on AI data centers. Chipmakers were hit hard, with Samsung Electronics down nearly 10% and SK Hynix falling over 11%. The Nasdaq 100 lost $2.3 trillion in market value in one day, and major tech firms collectively shed about $800 billion. Local voters in dozens of US cities also approved restrictions on data center construction.