Following the moves after the U.S. midterm elections, stock-picking in the Tokyo market became polarized. The across-the-board rise in automotive stocks contrasted with the sharp decline in semiconductor stocks, prompting views that institutional investors would accelerate their portfolio reshuffling.
After reports that Republicans had lost the U.S. midterm elections, stock-picking in the Tokyo market became sharply polarized. Market participants increasingly expect U.S. trade policy, including tariffs, and trends in AI investment, such as data-center construction, to affect market sentiment.
Automotive stocks rose across the board in the day's trading, with gains in such stocks as Toyota Motor standing out. Semiconductor-related stocks, by contrast, fell sharply, with Advantest and Kioxia Holdings among those showing contrasting moves.
Market participants pointed to the possibility that institutional investors would reshuffle their holdings following a turning point in U.S. policy. Some said sector rotation was prompting funds to move between areas of the market.
Expectations for an improvement in Fast Retailing's monthly sales were not seen as a market driver, although the stock at one point rose more than 10% from the previous day in a move following its earnings announcement on the 4th. Some market participants also said their view that the expansion in AI demand would continue had not changed.