Asian Tech Stocks Drop on AI Concerns

Asian equity markets mostly declined on Wednesday, with technology shares leading the losses as a strong Democratic performance in the US midterm elections fueled concerns over stricter artificial intelligence regulations and increased corporate oversight. Investors also grew wary that political gridlock in Washington could constrain government spending and weigh on US economic growth. These developments added further pressure to global equity markets, which were already facing a broad selloff amid rising doubts about the sustainability of massive investments in AI. Japan’s Nikkei 225 plunged more than 4%, while South Korea’s KOSPI declined by over 3%. Chinese equities also struggled to gain ground despite ongoing efforts by Beijing to support the market.