Asian Stocks Split as US Election Sparks AI Regulation Fears

Asian stocks diverged sharply Thursday after Democrats swept the US Midterm Elections, with South Korea's KOSPI plunging over 3 percent and Japan's Nikkei falling on concerns about tighter AI regulation. Samsung and SK Hynix led the semiconductor selloff, while automakers and consumer stocks rallied. The KOSPI dropped 184 points, or 3.25 percent, to 5,500, dragged down by Samsung Electronics and SK Hynix, which each fell over 5 percent. Japan's Nikkei 225 declined 275 points, or 0.44 percent, to 61,913.5, reversing earlier gains, while Hong Kong's Hang Seng surged 3.1 percent. Democrats' victory raised worries that increased regulatory scrutiny could slow AI investments and delay data centre construction. Automakers like Toyota and Honda gained about 5 percent on expectations of lower tariffs and easing crude oil prices, with Brent falling to $94.12 a barrel.