The turbulence that hit technology and artificial intelligence stocks on Wall Street spread forcefully to Asian markets, dragging down the stock markets of Tokyo, Seoul, Hong Kong and Taipei.
Japan’s Nikkei lost 5.9%, Seoul’s Kospi index lost more than 6%, while Hong Kong’s Hang Seng Tech fell 1%. In China, the Star market and the ChiNext artificial intelligence index both lost more than 4%.
Regulatory concerns after the US elections
Investor fears about the new political framework that emerged after the mid-term elections in the United States triggered the sales. Operators fear that the new political context could result in stricter rules for the artificial intelligence sector, with possible restrictions on the development of data centers and related infrastructure.
The most affected stocks
Among the most penalized stocks stands out the Japanese conglomerate SoftBank, which lost over 10.5% on the Tokyo Stock Exchange. Chipmaker Kioxia lost 11%, Advantest 5% and Tokyo Electron 5.6%.
The losses were also heavy for the South Korean chip giants: Sk Hynix left 9.8% on the ground in Seoul, Samsung Electronics 6%. Strong drops also for electronic component suppliers Lg Innotek (-7.7%) and Lg Display (-4.7%).
In Taiwan, contract chipmaker TSMC closed down 4.69% on the Taipei Stock Exchange, while Foxconn Technology lost 4.4%. The Taiwan Weighted Index closed at -4.47%.