{"id":14107,"date":"2026-11-06T09:10:24","date_gmt":"2026-11-06T09:10:24","guid":{"rendered":"https:\/\/sotnews.agency\/?p=14107"},"modified":"2026-11-06T09:10:24","modified_gmt":"2026-11-06T09:10:24","slug":"tech-stock-rout-driven-by-us-ai-fears-continues-in-asian-trading-business-and-economy-news","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=14107","title":{"rendered":"Tech stock rout, driven by US AI fears, continues in Asian trading | Business and Economy News"},"content":{"rendered":"
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A tech stock rout that began overnight in the United States<\/a> has persisted in Asian trading.<\/p>\n

Market authorities in South Korea paused trading on Friday as prices plunged across the region. Global markets have been rattled by a sharp fall in the trading price of tech stocks, which is driven by fears that the Democrats\u2019 victory in the US midterm elections<\/a> will increase regulatory scrutiny of AI and slow the country\u2019s data centre build-out.<\/p>\n

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Recommended Stories <\/h2>\n

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Japan\u2019s Nikkei index slumped 6 percent, its deepest one-day drop since April 2025. Indices in South Korea and Taiwan plunged more than 8 percent after the opening bell, before cutting losses as authorities scrambled to stem the selling.<\/p>\n

Wall Street\u2019s volatility \u201cfear gauge\u201d soared overnight on Thursday and the tech-focused Nasdaq sank 5.5 percent, wiping $3 trillion off S&P 500 firms, as investors fretted that the Democrats could put the brakes on the AI boom being encouraged by President Donald Trump.<\/p>\n

\u201cIt was a brutal morning for many investors here in Asia. We saw that the AI sell-off continues here across many countries,\u201d Al Jazeera\u2019s Katrina Yu reported from Beijing.<\/p>\n

\u201cSome of those major markets have fortunately recovered some of those losses, but all of them are still clearly in the red,\u201d she said.<\/p>\n

Analysts say the political jitters are hitting an AI trade already on shaky footing due to worries about returns on massive spending on related infrastructure.<\/p>\n

\u201cThe selloff shows that AI stock prices had been built on rosy illusions about the future, and now that illusion is gone,\u201d Dong Baozhen, chairman of asset manager Lingtong Shengtai, told the Reuters news agency.<\/p>\n

\u201cThe US stock market has been the standard-bearer and backbone of the global AI bull run. Now that backbone has snapped. Can AI bull markets elsewhere hold up on their own?\u201d<\/p>\n

Authorities step in<\/h2>\n

Markets cut some of their losses by the time Asian markets closed, as authorities worked to stem the panic.<\/p>\n

Trading on South Korea\u2019s Kospi market was temporarily halted amid the sharp slide. Finance Minister Lee Hyoung-il also eased rules on retail investors\u2019 leveraged investments.<\/p>\n

In China, state entities stepped in to buy up equities in a bid to stabilise the market, said Al Jazeera\u2019s Yu.<\/p>\n

The Taiwan stock market closed down 4.5 percent, recovering somewhat from its early morning slump. For the week, the index clocked a 12.2 percent decline, its biggest since 1991, LSEG data showed.<\/p>\n

The government of the island state, a key producer of chips, sought to talk up the prospects for the sector.<\/p>\n

Demand \u2060for emerging technologies like AI, \u2060high-performance computing and \u2060cloud services is expected to keep expanding, driving \u200cdemand for tech companies, the economy ministry said in a statement issued on Friday.<\/p>\n

Korean AI chipmakers Samsung Electronics and SK Hynix fell nearly 6 percent and 9.4 percent respectively, cutting steep losses from earlier. TSMC fell as much as 8.5 percent in Taiwan, before closing down 4.7 percent.<\/p>\n

In Japan, Kioxia plunged 11 percent while AI investor SoftBank Group slid 11 percent.<\/p>\n

New regulations<\/h3>\n

The selling indicates investors are starting to factor in increased opposition to data centres. Analysts say markets have yet to fully consider the cost such building work has imposed on communities.<\/p>\n

Toby Walsh, the chief scientist for the AI Institute at Australia\u2019s University of New South Wales, said he expected new regulations on data centres in many countries, including the US, Australia and the United Kingdom.<\/p>\n

\u201cThe developers were building them in a way that wasn\u2019t actually getting social licence,\u201d Walsh told Al Jazeera.<\/p>\n

\u201cThey were building them in places where they didn\u2019t need to build. You don\u2019t have to build data centres in urban areas. You can build them in the middle of nowhere.<\/p>\n

\u201cI think it\u2019s actually for the good of the tech industry in the United States that this has happened,\u201d he added. \u201cWe\u2019re spending money a bit too quickly. And maybe this is the way to let that bubble deflate in a manageable way.\u201d<\/p>\n<\/div>\n\n

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A tech stock rout that began overnight in the United States has persisted in Asian trading. Market authorities in South Korea paused trading on Friday as prices plunged across the region. Global markets have been rattled by a sharp fall in the trading price of tech stocks, which is driven by fears that the Democrats\u2019…<\/p>\n","protected":false},"author":1,"featured_media":14108,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"categories":[11],"tags":[],"class_list":["post-14107","post","type-post","status-publish","format-standard","has-post-thumbnail","category-international-news"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t