Tokyo and Seoul stocks plunge as US tech selloff hits AI investments

Tokyo and Seoul stock markets plunged Friday following Wall Street's tech selloff, driven by concerns that US midterm election results could slow artificial intelligence data center investments. The Nikkei fell 5.69% while the Kospi dropped 7.92%, triggering a 20-minute trading halt. The Nasdaq fell 5.52% Thursday, its worst decline since April 2025, hammering Nvidia and other semiconductor stocks. South Korean chipmakers Samsung Electronics and SK hynix dropped nearly 10% and over 11% respectively, while Japan's Tokyo Electron and Kioxia fell about 9% and 13%. Investors initially welcomed Democrats' victory over President Donald Trump's Republicans but now fear stricter AI regulations could delay data center construction projects. Governments and tech giants globally are racing to build these facilities, part of a boom worth hundreds of billions of dollars.