The Nikkei was highly volatile, at one point nearing a break below ¥60,000, and closed at ¥62,188.63. Trading stabilized at times in the afternoon amid moves surrounding the US midterm election results.
In the Tokyo stock market on the 4th, the Nikkei Stock Average ended down ¥893.23 from the previous day at ¥62,188.63, after briefly falling below ¥60,000. Selling intensified, particularly in related stocks, as views spread that the Democratic Party was favorably positioned to tighten regulation of AI-related stocks in the US midterm elections.
The decline briefly deepened in the afternoon, but selling following reports of a Democratic lead ran its course. As the broader market regained composure, the decline narrowed by the close.
Market sentiment was also affected by reports from US media that President Trump had indicated he would “gladly accept” the midterm election results, prompting what was described as growing relief that turmoil could be avoided.
The market moves reflected overlapping short-term reactions to the outlook for AI regulation and interpretations of the election results. Much will depend on further reports before the market’s subsequent direction becomes clearer.