The Nikkei Average extended its decline, trading approximately 2.5% below the previous day's level. Weakness in AI-related stocks weighed on the market, with declines in semiconductor and AI stocks in particular deepening the overall market's decline.
The Nikkei Average was approximately 2.5% lower than the previous day in Tokyo trading on the 4th, trading in the upper ¥61,300s. Market participants said that a move to reduce positions in AI-related stocks had spread against the backdrop of progress in the U.S. midterm election vote count.
Among individual stocks, declines in Advantest and SoftBank Group stood out and contributed to the overall market decline. Airline stocks, meanwhile, were firm, with Japan Airlines up more than 4% and ANA Holdings up more than 2%.
Japan Investment Corporation (JIC), a government-backed investment fund, was reported to be selling major semiconductor materials manufacturer JSR to Mitsui Chemicals, providing a market cue. The move drew attention to related stocks.