SINGAPORE: A rout in Asia's tech-heavy markets deepened on Friday as fear of increased regulatory scrutiny and a slowdown in AI build-out precipitated the steepest decline in US stocks since the tariff-triggered "Liberation Day" selloff in April 2025.
Japan's Nikkei .N225 slumped 7% immediately after the opening bell while benchmark share price indices in South Korea .KS11 and Taiwan .TWII dropped more than 8%. Stocks across the region then appeared to stabilise as dip buyers emerged.
European stock futures STXEc1 also cut initial loss and were last down 0.6%. Nasdaq futures were up 1.4% though sentiment remained fragile.
Wall Street's volatility "fear gauge" soared .VIX, the Nasdaq .IXIC sank 5.5% and US$3 trillion was wiped off S&P 500 firms, with investors worried Democrats, who dominated midterm elections this week, will apply brakes to the AI boom.
