In the Tokyo stock market on the 6th, the Nikkei Average plunged on concerns over tighter AI regulation and the impact of the US midterm elections, closing at ¥57,434.77 and falling below ¥60,000 for the first time in 5.5 months. The market saw a broad-based sell-off, led by AI-related stocks.
In the Tokyo stock market on the 6th, the Nikkei Stock Average ended trading at ¥57,434.77, down ¥3,643.13 from the previous day. It fell below ¥60,000 on 6 June for the first time in approximately 5.5 months, while the Nikkei's decline was the third-largest on record. Against the backdrop of the US midterm elections, speculation over tighter regulation of AI-related stocks spread, prompting risk-averse trading across the market.
The sharp decline in AI-related stocks that had driven the market led to broader selling, particularly in semiconductor manufacturing equipment and electronic materials stocks, with approximately 98% of Prime Market issues falling on the 6th. Selling also dominated the Tokyo market from the opening, and the Nikkei Average fell more than ¥4,300 at one point.
Following the Democratic Party's gains in the US midterm elections, the market became increasingly concerned about a more cautious stance toward AI data-centre development, raising concerns that robust capital investment demand could slow. Selling in AI-related stocks has continued globally, strengthening risk aversion in response to overseas market trends.