Asian Markets Slide as US Midterm Results Stir AI Regulation Fears

The selloff is a policy-risk repricing rather than an earnings story: chip equities are the transmission channel because tighter AI rules would hit demand expectations first, and Asia's semiconductor-heavy indices are the most direct proxy for that exposure. The split reaction is the more telling signal — China's buyback and relending pledge is cushioning its own market even as regional risk appetite weakens, pointing to diverging policy backstops rather than a single regional shock. Whether the regulatory fear persists past the initial headline reaction, and whether Beijing's support measures hold the STAR 50's gains while the rest of the region stays under pressure, are the open questions.