Asian Stocks Fall as Election Results Put AI Spending in Focus

Asian equities fell during Wednesday trading as investors sold artificial-intelligence-linked shares amid early indications that Democrats were gaining ground in the US midterm elections. The move reflected concern that greater scrutiny of data-center construction could slow investment and weigh on demand for the chips and equipment supplied by companies across the region. Neither chamber of Congress had been formally called in the early Asian-session reporting. Japan’s Nikkei 225 was down 2.97% at 61,205.38 at 10:40 a.m. Tokyo time, according to a reported market snapshot. South Korea’s Kospi and Taiwan’s benchmark also declined in early trading, though reports gave differing readings at different points in the session. The broad regional selling was concentrated in technology and AI-related shares, including chipmakers, equipment suppliers and server builders. The concern centers on the cost and pace of expanding data centers. Democratic candidates had focused on electricity bills and the infrastructure demands of the facilities, prompting investors to consider whether a shift in congressional control could bring tighter oversight, added costs or slower approvals. The impact...