The Nikkei plunged sharply following a vote-count update from the US midterm elections. Declines in major semiconductor stocks and uncertainty over US politics prompted selling, bringing the ¥60,000 threshold into focus.
In the Tokyo market on the morning of 4 November, the Nikkei fell about ¥2,246 from the previous trading day to ¥60,835.36. Declines in major semiconductor stocks weighed on the index, with Advantest and Tokyo Electron accounting for about ¥920 of the drop. The backdrop was growing caution over possible changes in policy management as vote-count updates from the US midterm elections indicated Republican struggles and a strong Democratic performance.
Selling in semiconductor-related stocks spread amid concerns that AI and data-center investment could be constrained, while activity involving futures may have exacerbated the decline. Among individual stocks, Kioxia Holdings fell below ¥10,000 during trading, weighing on investor sentiment. Its profit outlook for the October–December quarter was also below market expectations, which was seen as a contributing factor.
Some market participants believe that the prospect of the Democrats retaining a majority could moderate the pace of policy changes. Others noted that the election results could trigger additional selling pressure, leaving the market outlook uncertain. Against this backdrop, short-term risk aversion was also said to be outweighing stock valuations.