The Nikkei continued to decline in Tokyo trading after the holiday, falling to a level around ¥800 lower at one point. Moves in AI- and semiconductor-related stocks in the US market and the US midterm election outlook are weighing on the market.
The Nikkei continued to decline in Tokyo trading after the four-day holiday weekend, falling to a level around ¥800 below the previous day's close. It initially rebounded modestly in the morning but then turned lower, with selling generally prevailing.
Although technology stocks broadly recovered in the US market, AI-related stocks had plunged through 2 November, and selling in AI- and semiconductor-related stocks also weighed on the Nikkei in Tokyo. The Nasdaq Composite ended up 0.82%, but concerns remain over sustainability and profitability.
Immediately after the open, results from major US semiconductor company AMD provided support in part, as demand for data centers was viewed as firm. The rise in AMD's share price in after-hours trading prompted buying in Japanese semiconductor-related stocks, at times supporting the Nikkei.
Among domestic stocks, Kyocera, Kioxia and Recruit fell, while Fast Retailing and Konami Group rose. The TOPIX turned lower after rising, with the US midterm election results and trends in AI investment the market's focus.