Japanese stocks plunged following the results of the U.S. midterm elections. Securities firms in Shizuoka Prefecture were unable to keep up with customer inquiries, prompting calls to determine the factors behind the market's movements.
After the Republican Party suffered a heavy defeat in the U.S. midterm elections, the Nikkei 225 temporarily fell more than ¥4,300, dropping below ¥57,000. A steep decline from the previous day and a fall below levels last seen in May were reported.
Securities firms in Shizuoka Prefecture said that inquiries from customers had increased and that they were struggling to respond. Political uncertainty, reports of the defense secretary's resignation rumor and the possibility of a resignation were cited as causes.
Bloomberg reported, citing people familiar with the matter, that Secretary of State Marco Rubio was considering resigning, identifying this as a negative factor for the Trump administration. Concerns about tighter regulation surrounding AI and data centers were also cited as factors affecting Japanese stocks.
Residents' opposition, lawsuits and temporary municipal suspensions concerning data center construction in Michigan were also reported. While Democrats took a cautious stance toward data center construction, Republicans at one point shifted from their initial policy of expansion. Ultimately, Democratic candidate El-Sayed won.
The view was expressed that market volatility would continue depending on political developments in Japan and the United States, and the following day's closing price was reported as sharply lower than the previous day.