On the 6th, heavy selling of AI-related stocks hit the Tokyo market, sending the Nikkei average down ¥3,643.13 to ¥57,434.77 at the close and decisively below ¥60,000 for the first time.
The Tokyo market fell broadly on the 6th, led by AI-related stocks. The Nikkei average ended down ¥3,643.13 from the previous day at ¥57,434.77, marking its fifth consecutive decline and its third-largest drop on record. On the TSE Prime Market, 1,523 stocks fell, while only 21 rose.
One cited factor behind the sharp decline was the Democratic Party’s landslide victory in the U.S. midterm elections on the 3rd, which reportedly made tighter regulation of data-center construction more likely. In the U.S. market, the Nasdaq Composite fell approximately 5% and the SOX index plunged approximately 12%. These moves were reportedly felt in the Tokyo market.
A wide range of stocks plunged in Tokyo, including Advantest, Tokyo Electron, Kioxia and SoftBank Group, not only AI-related stocks. Alongside concerns about slowing data-center investment, the breakdown of the scenario of massive investment and high growth has prompted a reassessment of the market’s growth expectations. The Nikkei average also fell below the psychologically important ¥60,000 level and below its 200-day and 52-week moving averages.
There had been support for stock prices from policy expectations known as the “Takaichi trade,” but the latest plunge has spread across a broad range of stocks beyond AI and semiconductor issues. Market developments from next week onward are therefore being closely watched.