AI Selloff Sweeps Across Asia, Taiwan Stocks Plunge Nearly 9%, Semiconductor Shares Hit Hard

Odaily: Asian stocks fell sharply Friday morning, following the overnight U.S. selloff. South Korea's SK Hynix plunged 12% and Samsung Electronics dropped 10%, dragging the KOSPI index down more than 8% at one point and triggering a circuit breaker. Japan's Nikkei 225 fell below 57,000 points, down more than 6.7%, with Kioxia dropping 11%. Taiwan's weighted index opened nearly 9% lower, with TSMC down almost 10%. Markets are concerned that changes in the U.S. political landscape could slow data center construction, in turn hitting semiconductor companies' growth prospects. Analysts noted that a Democratic election victory could serve as a catalyst for a more sustained unwind of AI stocks. Meanwhile, markets are reassessing the possibility of the Iran war ending, and international oil prices have rebounded. ANZ analysts said oil prices fell sharply and quickly after the election results were announced, which may have been an overreaction. Analysts said the market is beginning to recognize the reality of the situation — Iran still controls the Strait of Hormuz and is unlikely to give up that control. (Jinshi)