Asian and European stocks slide as US midterm results fuel fears of tighter AI data centre rules

Summary

Japanese and South Korean shares plunged on Friday after US shares tumbled overnight over worries that the midterm election results could slow or derail the AI data centre investment boom. According to the South China Morning Post, Tokyo's Nikkei 225 fell 5.1 per cent to 56,930 points in early trade, and Seoul's Kospi dived 8.5 per cent to 4,923, triggering a circuit breaker that suspended trading for 20 minutes. France 24 reports that Asian tech stocks fell sharply, with Seoul and Tokyo leading the losses, and that European shares also tumbled as global investors grappled with uncertainty over AI stocks. France 24 attributes the sell-off to fears of tighter AI regulation after the Democrats' sweeping midterm victory, noting that many winning candidates pledged to curb data centre development, which it says US voters widely oppose. The South China Morning Post says investors had initially cheered Tuesday's results, which it describes as a Democratic drubbing of US President Donald Trump.

Timeline

1. South China Morning Post

   6 Nov 2026, 02:31 UTCSource ↗

   Japanese and South Korean shares plunged on Friday after US shares tumbled overnight on worries that the midterm results could slow the AI data centre investment boom, with the Nikkei 225 down 5.1 per cent and the Kospi down 8.5 per cent, triggering a 20-minute trading suspension.

2. France 24

   6 Nov 2026, 05:02 UTCSource ↗

   Asian tech stocks fell sharply on Friday, with Seoul and Tokyo leading losses after a Wall Street sell-off driven by fears of tighter AI regulation following the Democrats' midterm election victory, and many winning candidates pledged to curb data centre development.

3. France 24

   6 Nov 2026, 09:37 UTCSource ↗

   European shares tumbled on Friday as global investors grappled with uncertainty over AI stocks after the Democrats' sweeping midterm victory, with fears that Democrats could curb AI data centre development, which the outlet says is widely unpopular among US voters.