Asia stocks tumble after AI rout rocks US markets

Asian equities fell sharply on Friday after a steep US technology selloff, with Japan’s Nikkei down 7 per cent soon after trading began and South Korean and Taiwanese benchmarks losing more than 8pc. Dawn reported that buying later helped regional markets steady, while US Nasdaq futures rose 1.4pc and European futures were down 0.6pc.

The Nasdaq dropped 5.5pc overnight and the value of S&P 500 companies fell by $3 trillion, as investors questioned the returns from heavy artificial-intelligence infrastructure spending and feared tighter scrutiny. Semiconductor shares also slid, while investors moved into government bonds and the yen; the US dollar weakened against the yen and Swiss franc. The turmoil highlights how concerns over AI investment and market sentiment can spill across global technology markets.