The Nikkei extended its sharp decline in the Tokyo stock market on the morning of the 4th following a public holiday. Reports that Democrats were leading in the U.S. midterm elections prompted selling in AI and semiconductor-related stocks, sending the index temporarily below ¥61,000.
The Nikkei Stock Average stood at ¥60,835.36 at the morning close, down approximately ¥2,246 from the previous day, marking a sharp decline. The index also fell below ¥61,000 at times during the morning session, bringing the longer-term downtrend into focus.
As reports emerged, amid progress in counting the U.S. midterm election votes, that the Democratic Party was leading in both chambers of Congress, selling accelerated, centered on AI and semiconductor-related stocks. Selling pressure spread across AI and semiconductor-related names in focus.
Across the TSE Prime Market, estimated trading value was approximately ¥4.694 trillion, while trading volume was approximately 1.3 billion shares. In addition to the Nikkei, TOPIX and the JPX Prime 150 Index also extended their declines.
Following the morning session, SBG, Kioxia and Kyocera fell, while Fast Retailing and Konami Group rose.
The Nasdaq Composite briefly rebounded in the U.S. market, but this was not enough to contain the Nikkei's decline, and developments in the U.S. stock market remained a focus.