Stock markets in Asia plunged Friday, following a tech-led sell-off in the US on anticipation that newly elected Democratic officials could stymie an AI investment boom that’s driven global stocks to record highs.
South Korea’s Kospi index dropped more than 8% after opening, triggering a halt in trading on the exchange, while Japan’s Nikkei 225 index fell about 6%.
Asian tech companies, which play an integral role in the global electronics supply chain, have been buoyed by insatiable demand for components such as semiconductors needed to build massive AI data centers. Some economists estimate that AI infrastructure led by US tech giants including Nvidia could reach $1 trillion a year in the coming years.
