As investors avoided risk ahead of the U.S. midterm election vote count, the Nikkei average fell sharply in morning trading. Alongside declines in AI-related stocks, the opening level was ¥62,973.
The Nikkei Stock Average fell sharply in Tokyo trading on the 4th, with the morning close down ¥2,246.50 from the previous session at ¥60,835.36. It fell below the ¥61,000 level for the first time since 29 July, as investors increasingly avoided risk ahead of the U.S. midterm elections.
In the previous day's U.S. trading, the Dow Jones Average closed down 0.38%, and the Nikkei's decline widened as AI- and semiconductor-related stocks fell. These 3 stocks pushed the Nikkei average down sharply and drove the overall decline.
As of 10 a.m., the overall outcome of the midterm elections was unclear, but pre-election opinion polls had fueled expectations that the Democratic Party was leading. Concerns over tighter AI regulation were viewed as a factor weighing on the stock market.
Market participants pointed out that the decline could widen depending on the election results. Meanwhile, some also expect concerns over AI regulation to recede if the Republican Party retains its majority.