The Nikkei Average fell ¥3,643 in trading at the end of the previous week, declining more than 20% from its June high and prompting market participants to view it as having entered a bear market. Some market participants are calling for the index to approach 50,000 by year-end. Meanwhile, the Democratic Party won the U.S. midterm elections, putting the direction of tighter regulation of AI development and data centers in focus.
The Nikkei Average fell ¥3,643 at the end of the previous week, with the decline reaching roughly the third-largest on record. The decline from its June high exceeded 20%, suggesting that a prolonged market correction could continue. This has led market participants to debate whether the index has entered a “bear market.”
Some market participants have pointed to the possibility that the Nikkei Average could approach 50,000 by year-end, while others believe that investors will continue trying to identify the market bottom. The specific trading date is provided in the article.
In the United States, the Democratic Party was reported to have won a landslide in the midterm elections held on 3 November, raising concerns about tighter regulation of AI development and data center construction. This is affecting sentiment in the Japanese and U.S. markets, with the direction of AI regulation emerging as a focus going forward.
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