The Nikkei Stock Average hit a five-and-a-half-month low, closing at ¥61,077.90, down approximately ¥1,111 from the previous day. The environment surrounding AI-related stocks has come back into focus after the Democrats' decisive victory in the US midterm elections.
In the Tokyo stock market on 5 November 2026, the Nikkei Stock Average fell for a fourth straight session, closing at ¥61,077.90, down ¥1,110.73 from the previous day and marking its lowest level in approximately five and a half months. The performance of AI-related stocks following the midterm elections was the market's focus.
As concern mounted over tighter AI regulation, AI data-center-related stocks performed unevenly. Semiconductor and emerging neocloud companies declined, while hyperscalers, led by GAFAM stocks, at times posted gains. Tighter regulation could make it more difficult for new entrants to join the market, while some view it as relatively advantageous for hyperscalers that have already made substantial capital investments.
The impact on defense and renewable-energy-related stocks was also highlighted. Although curbs on AI-related capital investment could create headwinds in the short term, they could contribute to the sound development of the AI industry over the longer term. Developments in the Iran conflict and movements in crude oil and energy-related markets were also cited as areas of market focus, while near-month crude oil futures have been declining.