Asian Stocks Slide as AI Selloff Spreads Across Chipmakers

Chipmakers bore the brunt of the retreat. South Korea’s Kospi dropped more than 8%, prompting a 20-minute trading halt, as SK Hynix lost 12% and Samsung Electronics fell 10%. In Japan, Kioxia Holdings declined 11% and Tokyo Electron shed 7.5%, while the Nikkei Stock Average slid 5.5%. Taiwan’s Taiex fell 8.6%, putting it on course for its steepest daily percentage loss since April 2025. Taiwan Semiconductor Manufacturing Co. dropped 9.15% and MediaTek was down 10%.

The declines followed a 5.5% plunge in the Nasdaq on Thursday, its worst one-day drop since April 2025. The Philadelphia Semiconductor Index fell 12%; Nvidia lost 9.3% and Intel slid 10%. Joe Maher, markets economist at Capital Economics, said fears about the sustainability of the AI buildout, alongside a major shift in U.S. politics after the election, had delivered another bruising session for technology stocks. He said the Democratic election win could become a catalyst for a longer-lasting unwind of the AI equity boom.

Charu Chanana, chief investment strategist at Saxo Markets, said political opposition to data-center expansion was gaining momentum. That could weigh on data-center operators, power-equipment suppliers and semiconductor companies whose growth expectations rely on rapid infrastructure expansion.

Oil prices moved higher as traders reconsidered the prospect of an end to the Iran war. ANZ Research analysts said the sharp decline in oil prices immediately after the election results was likely overdone, arguing that Iran still controls the Strait of Hormuz and is unlikely to give up that control. Front-month West Texas Intermediate futures rose 0.9% to $91.29 a barrel, while Brent gained 1.0% to $99.24.