Tech stock rout, driven by US AI fears, continues in Asian trading

What happened: A tech stock rout that started overnight in the United States continued in Asian trading, with South Korean authorities briefly halting trading on the Kospi market as prices plunged across the region. Key numbers: Japan's Nikkei fell 6 percent, its deepest one-day drop since April 2025. Why it matters: Investors fear a Democratic midterm victory will increase regulatory scrutiny of AI and slow the US data centre build-out. Analysts say the political jitters are hitting an AI trade already shaky over returns on infrastructure spending.

A tech stock rout that started overnight in the United States continued in Asian trading, with South Korean authorities briefly halting trading on the Kospi market as prices plunged across the region.

Investors fear a Democratic midterm victory will increase regulatory scrutiny of AI and slow the US data centre build-out. Analysts say the political jitters are hitting an AI trade already shaky over returns on infrastructure spending.