Asian share markets fell sharply on Friday as a steep Wall Street sell-off in technology and artificial intelligence-linked stocks spread into the region, putting pressure on major indexes in Japan and South Korea.

The Associated Press reported that Japan’s Nikkei 225 dropped more than 6% after trading opened, while South Korea’s Kospi fell 7.4% to 4,985.99 in morning trading. Samsung Electronics, one of the market’s largest companies, was down 7.9% at that point. The AP said the moves followed a broad retreat in US shares tied to concerns about the scale and returns of artificial intelligence investment.

Reuters reported that the selling deepened as the session progressed: the Kospi fell more than 8%, triggering a 20-minute trading halt, while Japan’s Nikkei was down about 5% in its update. The different figures reflect snapshots taken at different moments during a volatile session. Reuters also reported that the Nasdaq fell 5.5% on Thursday and the Philadelphia Semiconductor Index lost 12.2%.

Investors have been weighing whether the enormous spending on data centers and AI infrastructure will generate returns quickly enough to justify current valuations. Reuters said the post-election outlook added uncertainty, as investors considered whether new US political priorities could bring closer scrutiny or slow parts of the build-out. That remains a market concern, rather than a settled policy outcome.

Market declines were broad across Asian chipmakers and data-center suppliers, according to Reuters. The sharp swings underscore how closely regional markets have become tied to expectations for US technology spending, even as analysts and investors continue to debate the durability of the AI-led investment cycle.

Sources: Associated Press; Reuters via Investing.com.