BENGALURU: Taiwan equities booked their worst week since 2001 and South Korean shares slumped on Friday, as investors dumped chipmakers, accelerating a technology selloff driven by concerns over stricter regulation and fading AI optimism.
Financial markets across the world have seesawed this week as hopes that a Democratic sweep in US elections would hasten an end to the Iran war shrivelled in the face of mounting concern over tighter regulation of data centres.
The global tech selloff caused the Nasdaq’s steepest one-day drop since April’s “Liberation Day” rout, with fears of greater scrutiny of AI investments and data-centre projects spilling over into tech-heavy markets across emerging Asia.
Taiwan stocks fell 4.5 percent to their lowest close since late April and posted the steepest weekly drop since September 2001. The market has slumped more than 20 percent from its early-October record high.
South Korea’s KOSPI reeled from the technology-led selloff, plunging as much as 8.8 percent and triggering a circuit breaker before recovering some ground to close 6 percent lower. The benchmark lost more than a tenth of its value this week.
In Singapore, stocks slid 2.8 percent, dragged lower by heavyweight lenders DBS and United Overseas Bank, which fell 2.5 percent and 3.2 percent, respectively.
The benchmark has lost more than 4 percent this week, weighed down by a sharp selloff in banks after the lenders reported weaker-than-expected profits.
In Malaysia, stocks fell 1.4 percent and the ringgit weakened to 4.056 per US dollar. Bank Negara Malaysia left interest rates unchanged as expected on Thursday, citing moderate inflation and an economy it expects to remain resilient next year.
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