The Nikkei Average briefly fell below ¥60,000 in Tokyo trading today, recording a sharp decline of more than ¥3,000. Concerns that tighter regulations on AI and data centers following the US midterm elections will worsen the investment environment are gaining ground.
The Nikkei Average fell by more than ¥3,500 at one point today, dropping below ¥60,000. It fell below that level for the first time in five and a half months, highlighting the deterioration in investor sentiment.
Investors are focused on the possibility of tighter regulations following the US midterm elections, and are increasingly of the view that a slowdown in investment related to AI and data centers will affect corporate earnings.
There are also concerns that market trends will negatively affect sectors, with some pointing to selling pressure, particularly in semiconductor-related stocks. The Nikkei Average's decline has been reported as a reaction to economic news from Japan and overseas.