In the middle of the afternoon session on the 4th, the Nikkei rapidly narrowed its losses and recovered to the 61,200 level. Short covering spread across AI-related stocks following the outlook for a Democratic victory in the United States.
In the middle of the afternoon session on the 4th, the Nikkei Stock Average rapidly narrowed its losses on the Tokyo stock market, recovering to the 61,200 level from a sharp decline from the morning session. The Nikkei at one point approached the 60,000 threshold on the downside, but buying-driven activity came to dominate trading.
As of 2 p.m., estimated trading value on the TSE Prime Market was ¥7.0148 trillion, and trading volume was 2.12518 billion shares. The Nikkei showed signs of recovery from a level approximately ¥1,900 below the previous day's close.
Supported by short covering in AI-related stocks, Advantest, Tokyo Electron and SoftBank Group were lower, while Fast Retailing, Mitsubishi Corp. and Nitto Denko were relatively firm. As counting progressed in the US midterm elections, reports that the Democrats were expected to regain majorities in both chambers increased market activity.
TOPIX recovered after briefly falling below the key 3,800 level, and the market as a whole moved to narrow its losses. Investor caution was gradually easing as the Nikkei recovered its level.