Global tech stock sell-off hits markets as investors fear stricter AI rules

Global stock markets are experiencing a major sell-off of technology shares, driven by investor fears that the Democratic victory in the US elections will lead to stricter artificial intelligence regulation and limit data center construction. Asian tech companies suffered particularly sharp losses. The sell-off, which hit Wall Street on Thursday, spread to Asia and Europe on Friday. Japan's Nikkei 225 fell nearly six percent, its steepest one-day drop since April last year, while Taiwan's TAIEX had its worst week since 1991. South Korea's Kospi plunged up to 8.8 percent, triggering a temporary trading halt. President Donald Trump blamed Democrats for the decline, claiming their victory reduced Americans' retirement savings. Investors are concerned about Democratic governors-elect, such as Texas's Gina Hinojosa, who promised to pause new data center projects. Analysts question whether AI investments will yield returns, though some view the sell-off as overdone.