In the Tokyo market on the 4th, the Nikkei fell sharply as AI-related stocks were sold amid the US midterm election developments, at one point losing more than ¥3,000. Buybacks subsequently emerged, and the index closed down ¥893.23 from the previous day at ¥62,188.63.
The Nikkei Stock Average fell sharply for a second straight session in the Tokyo stock market on the 4th, with the decline exceeding ¥3,000 at one point and the index briefly falling below ¥61,000. Reports that the Democrats were gaining the upper hand in the US midterm elections were cited as a factor weighing on AI-related stocks.
The market decline temporarily widened after reports that the Democrats would regain majorities in both chambers of Congress, but buying returned in undervalued stocks and the Nikkei ended at ¥62,188.63. The closing level was the lowest in three months, since 30 July.
In the Tokyo foreign exchange market, the yen temporarily strengthened into the mid-¥157 range against the dollar, but the dollar was subsequently bought back and the yen reversed course to weaken into the low ¥158 range by the evening of the 4th. Market movements appeared to have been influenced by overseas factors.
Related links include an illustrated article on the Nikkei’s movements, a market overview and breaking foreign-exchange updates.