Collapse in the AI Market: Sharp Declines in Asian Stock Markets

Growing concerns about the artificial intelligence sector in the US stock market have also affected Asian markets. Technology stocks have fallen sharply, while investors have moved away from riskier assets and turned to government bonds.

The global technology sell-off intensified on Friday. Following the Democrats' victory in the US elections, concerns that government oversight of the artificial intelligence sector could become stricter, potentially slowing its development, weighed on investor sentiment.

Japan recorded the sharpest decline in Asian markets. The Nikkei 225 index fell 6%, marking its biggest one-day loss since April 2025. Stocks in South Korea and Taiwan also dropped by more than 8% at the start of trading. However, losses were partially reduced after local authorities intervened in the markets.

The situation was also tense in the United States. The Nasdaq index fell 5.5%, wiping approximately $3 trillion off the combined market value of S&P 500 companies. The VIX index, which measures investor fear on Wall Street, also surged.

According to analysts, the market decline is not solely linked to political developments. Doubts about the profitability of massive investments in artificial intelligence infrastructure and data centres are also increasing selling pressure.

Technology giants' shares decline

Major players in the artificial intelligence sector have also suffered significant losses. Shares of South Korea's Samsung Electronics fell by approximately 10%, while SK Hynix shares dropped 12%.

Japan's Kioxia lost 14%, while shares of Taiwan's TSMC, one of the world's leading semiconductor manufacturers, declined by 8.5%.

Shares of Japan's SoftBank Group, which has made substantial investments in the artificial intelligence sector, also fell 11%.

Experts say investors are reassessing the future growth prospects of technology companies. One of the key questions is whether the billions of dollars invested in artificial intelligence will generate the expected returns.

Concerns over regulation and data centres

Another factor adding pressure to the markets is growing public and political opposition to artificial intelligence infrastructure in the United States.

The construction of data centres requires large amounts of electricity and water, causing concern among local communities in some regions.

Texas Governor-elect Gina Hinojosa has also announced plans to introduce new legislation aimed at reducing the impact of data centre operations on residents.

Investors believe that tighter regulation, high interest rates and limited access to financing could particularly affect smaller technology companies.

Investors turn to safe-haven assets

Amid the stock market decline, investors have shifted towards government bonds and currencies considered safer assets.

Government bond prices in the United States, Japan and China have risen in Asian markets. Meanwhile, the US dollar has weakened against safe-haven currencies such as the Japanese yen and the Swiss franc.

The yield on US 10-year Treasury bonds fell to 4.838%, approaching its lowest level since September 9. The yield on Japan's 10-year government bonds also declined by 0.09 percentage points to 1.795%.

Nevertheless, some analysts believe the sell-off in technology stocks has been excessive and that the market may stabilise in the near future.

The current situation shows that the artificial intelligence sector is now being assessed not only in terms of technological development and investment opportunities but also in relation to political regulation, financing conditions and economic risks. These factors are expected to continue influencing global financial markets.