The Nikkei plunged on the 6th, falling more than ¥4,100, and remained below ¥57,000 throughout the day. Concerns grew that AI investment would be scaled back following the results of the US midterm elections, while bonds were bought as funds moved into safe-haven assets. The yen traded in the high ¥157s against the dollar.
The Nikkei Stock Average fell sharply on the 6th, entering a phase of steep declines from the opening through the close. It recorded an intraday drop of more than ¥4,100 and, technically, moved toward its previous low range.
The Tokyo Stock Price Index (TOPIX) also fell sharply, spreading a bearish tone across the market. The index was down more than 20% from its June closing-price high, prompting speculation that it could enter a bear market.
Funds increasingly moved into safe-haven assets, sending bonds higher. With the yen trading in the high ¥157s against the dollar, the risk-off trend was pronounced.
The backdrop included the Democratic Party's lead in the US midterm elections and concerns that tighter regulation aimed at curbing AI investment would slow data-center-related investment.