In trading on 4 November, the Nikkei 225 fell more than ¥2,000 at one point. As vote counting in the U.S. midterm elections progressed, uncertainty spread through the market and selling expanded, particularly in AI- and semiconductor-related stocks.
On the 4th, the Nikkei 225 fell sharply from the previous day, and after a decline of more than ¥1,500 was reported in morning trading, the loss widened further, eventually exceeding ¥2,000 at one point. Uncertainty surrounding the U.S. midterm elections intensified, strengthening investors' risk-averse stance.
AI- and semiconductor-related stocks, many of them high-priced stocks, led the selling. Kioxia Holdings, Advantest and SoftBank Group were cited as factors weighing on the Nikkei 225.
Market participants analyzed that concerns over tighter data center regulations after the election were strengthening against the backdrop of the Democratic Party's seat count rising faster than initially expected. This is thought to have added to the downward pressure on AI and semiconductor stocks.