The Nikkei Average fell sharply by more than ¥2,000, dropping below ¥61,000. The decline is believed to have been driven by expanding selling amid uncertainty over the US midterm election results and views on AI regulation.
The Nikkei Average fell sharply in the day's trading, with the decline in major stock indexes exceeding ¥2,000. The market decline was influenced by a strengthening risk-averse stance among investors against the backdrop of political developments in the United States.
In daytime trading, the Nikkei fell below the key ¥61,000 level, reaching its lowest level since the end of July. Market participants believe that caution following the US midterm election results accelerated selling.
Selling was centered on related stocks, including semiconductor shares, with some pointing to growing concern over the outlook for AI-related demand. There is a view that investment could become more difficult if moves perceived as favourable to AI regulation gain momentum as the Democratic Party's lead becomes clear.
Some market participants said that trading has continued while investors monitor the vote-counting process. The market is closely watching the progress of the count and regulatory developments.