Asian Markets Plunge as AI Sell-Off Spreads From Wall Street

Asian equity markets opened with sharp losses on Friday after a severe sell-off in artificial intelligence stocks on Wall Street.

The Nikkei 225 index in Tokyo fell 6.2 percent during morning trading to 57,271.19. South Korea's Kospi index experienced a similar drop of 7.1 percent, landing at 5,000.25. Australia's S&P/ASX 200 index declined by 0.7 percent to close at 9,003.40.

U.S. investors sold off shares of companies that have profited from the AI boom, driven by fears that rising borrowing costs will slow the construction of data centers. The S&P 500 dropped 4.4 percent on Thursday, marking its worst single-day performance since President Donald Trump introduced tariffs in April 2025. The Nasdaq composite, which holds a large portion of technology shares, tumbled 5.5 percent on Thursday. This decline placed the index 11.9 percent below its all-time high set last month.

Midterm elections held on Tuesday added to the uncertainty facing tech stocks. Democratic victories nationwide raised the prospect of government pauses on data center projects. Voters across political lines expressed concern over AI and rising electricity bills associated with these facilities. A slowdown in construction would reduce demand for AI chips, electricity, and related services that currently drive much of U.S. economic growth. Nvidia shares fell 9.3 percent on Thursday, while Advanced Micro Devices dropped 17.3 percent. CoreWeave and GE Vernova also saw declines of 9.8 percent and 7.5 percent, respectively.

Bond markets showed a shift toward safety as stock prices fell. The yield on the 10-year U.S. Treasury note dropped to 4.84 percent on Thursday, down from 4.90 percent late Wednesday. This yield had been above 5.30 percent last month and stood at 4.95 percent on election night. Fewer U.S. workers applied for unemployment benefits in the latest weekly report, a sign of economic stability that did not prevent the drop in yields. In currency markets, the U.S. dollar strengthened against the Japanese yen, rising to 157.83 from 157.65. The euro lost slight ground, trading at $1.1216.

Energy prices moved in opposite directions on the same day. Benchmark U.S. crude oil prices increased by 0.60 percent to $91.06 per barrel. Brent crude, the international benchmark, gained 3.88 percent to $98.29 per barrel. These gains occurred amid ongoing uncertainty regarding the conflict with Iran and the timing for a return to normal operations in the global energy sector.