FX.co ★ Asian Tech Stocks Drop on AI Concerns

Asian equity markets mostly fell on Wednesday, with technology stocks leading the decline after strong Democratic gains in the US midterm elections intensified concerns about tighter artificial intelligence regulation and greater corporate scrutiny. Investors also worried that renewed political gridlock in Washington could constrain government spending and dampen US economic growth. These factors further weighed on global equities, which were already under pressure from a broad selloff amid growing doubts about the sustainability of massive AI-related investments. Japan’s Nikkei 225 dropped more than 4%, South Korea’s KOSPI fell over 3%, and Chinese stocks also struggled to advance despite ongoing efforts by Beijing to bolster the market.