Asian tech stocks fell sharply on Friday, November 6, after a steep Wall Street selloff, as investors worried that Democratic gains in the US midterm elections could bring tighter rules for artificial intelligence and data center construction. The losses were steepest in Seoul and Tokyo. The Associated Press also reported declines across Asian markets as AI concerns weighed on investors.
Seoul’s Kospi fell nearly 9% at one point. Chipmaker SK hynix dropped 10%, while Samsung lost 8%. Tokyo’s market was down about 7%, with Kioxia and SoftBank each falling more than 10%. In Taipei, a 7% decline in TSMC shares helped pull the Taiex down around 8%.
The selloff followed a 5.5% drop in the Nasdaq on Thursday, its largest percentage decline since April 2025. The S&P 500 fell more than 4%, while the Dow Jones Industrial Average lost more than 3%.
Data center plans add to investor concerns
Investors were focused on campaign pledges by some midterm winners to curb data center development. The projects have drawn opposition from voters across the political spectrum, and Senator Bernie Sanders called for a national moratorium on new construction, according to France 24.
The election concerns added to existing doubts about the scale of companies’ AI spending, when those investments might generate returns, rising borrowing costs and elevated technology valuations. The fears reflect investor expectations; the reports do not describe new AI restrictions as having been enacted.
Other Asian markets, including Hong Kong, Shanghai, Sydney and Singapore, also fell by more than 1%. The sharp moves varied during trading, with reported losses reflecting different points in a volatile session.
Clayton Ward