KOSPI swings over 400 points on US election results, AI investment fears

South Korea's KOSPI index swung dramatically on Wednesday, fluctuating over 400 points, as markets reacted to the projected Democratic Party victory in the U.S. elections and concerns over potential AI investment slowdowns. The index initially surged over 3% before plunging to the 5,400 level, then rebounding sharply, with similar volatility seen in Japan and Taiwan. Semiconductor stocks were hit by fears that Democratic oversight of data centers could delay AI investments, though some analysts noted reduced political uncertainty may ease downward pressure. Tariff pressures are expected to persist, as the president's veto power limits policy changes and the Trump administration may maintain or raise tariffs on items like steel, autos, and semiconductors. Sector impacts will vary, with potential opportunities for renewable energy industries like solar power.