Against the backdrop of the US midterm election results, caution over tighter AI regulation spread and the Japanese market plunged. The Nikkei Average fell more than ¥4,000 at one point, with its closing decline ranking as the third-largest on record.
Selling dominated the Tokyo market from the opening, resulting in a broad-based decline led by semiconductor-related stocks. The Nikkei Average briefly fell below ¥57,000 and closed at ¥57,434.77, down ¥3,643.13. TOPIX ended trading at 3707.99.
As expectations grew that the Democratic Party would win decisively in the US midterm elections, the Dow Average in New York fell more than $1,800 on views that AI investment could be curbed. A broad collapse in AI-related stocks was reported.
Selling also intensified in the Japanese market from the morning, with declines in AI- and semiconductor-related stocks weighing on the market through the close. The decline was reported as the third-largest on record.
Future market movements are expected to depend on developments in AI regulation in the US and China and the timing of economic indicator releases. Further updates are awaited.