Asian stock exchanges have had their worst day since 2020, fearing for the future of artificial intelligence
Asian stock exchanges have suffered losses. Photo: Europa Press
Major Asian stock exchanges have recorded significant losses of up to9%, dominated by the markets most exposed to the technology sector, due to the uncertainty that has allegedly been created in the United States about the future of artificial intelligence investments and the development of this technology.
The parks in Taiwan, South Korea, and Japan have experienced the biggest setbacks, according to analysts. This is the biggest decline in Asian markets since 2020. Investors "concern is about the potential impact of the Democratic Party's victory in the United States on the rise of artificial intelligence and investments in building data centers.
On Thursday, the Nasdaq lost 5.52% on Wall Street, fueled by sales of companies linked to artificial intelligence, the New York Stock Exchange's worst session since April 2, 2025, when U.S. President Donald Trump announced his tariff policy.
Taiwan and South Korea, among the hardest hit markets
The Taipei Stock Exchange fell 8.85% at the beginning of the day. Despite moderating losses, the Taiex index fell 5.88% at 10 a.m. local time. Among the most affected companies are manufacturers and suppliers of components essential to the artificial intelligence industry, such as TSMC, Foxconn and MediaTek.
The Taiwanese Government has urged the Financial Supervisory Board to monitor market developments closely and take whatever measures it deems necessary to stabilize the stock market.
In South Korea, Kospi has lost more than 8% in the first few minutes of trading, forcing stock exchange operator Korea Exchange to suspend operations for 20 minutes through the circuit breaker mechanism.
Big tech companies have also not escaped losses, as Samsung Electronics has fallen by about 3.5%, while its competitor SK hynix has lost about 6%.
Tokyo loses more than 5%, and China wants to stop the decline.
In Japan, the Nikkei retreated 5.27% at half-session, falling below 60,000 points throughout the day, which was no more than five months ago.
Among the companies hardest hit were chip maker Kioxia, electrical component company Fujikura and telecommunications and investment group SoftBank, one of the world's leading investors in artificial intelligence.
In China, on the other hand, listed companies are recording the second largest volume of stock buybacks in their history, a strategy to convey confidence to investors and maintain a downward trend.
India has moved away from the sharp losses in the rest of the Asian markets. India's main indices have almost opened their doors, with slight upward and downward changes.
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