Against the backdrop of the U.S. midterm election results, the Nikkei 225 plunged ¥3,643, closing below ¥60,000. Concerns over the outlook for AI investment and tighter data center regulations weighed on market sentiment.
The Nikkei 225 fell sharply by ¥3,643 in Tokyo trading today, closing at ¥57,434. This was not the first time it had closed below ¥60,000, but the decline was the third-largest on record. Selling prevailed across the market, with the index at one point plunging into the low ¥50,000s shortly after trading began.
The backdrop was reportedly growing concern over AI-related investment following the U.S. midterm election results. Declines in the three major New York indexes, including IT-related stocks, intensified downward pressure on stock markets in both Japan and the United States.
Experts have pointed to whether tighter data center regulations become concrete as a potential turning point for the AI boom. Roadshow presentations by major U.S. AI companies are scheduled to begin next week, and some say that any postponement could revive caution toward data center-related stocks.
At present, it is difficult to determine how the market, which has been supported by expectations for AI and semiconductor stocks, will perform amid these headwinds.