Tokyo market summary (6 November) (Jiji Press)

The Nikkei 225 plunged to ¥57,434.77, down ¥3,643.13 from the previous day, while the TOPIX fell sharply by 232.40 points to 3,707.99. Trading volume was 4.30583 billion shares and turnover was ¥12.4808 trillion, indicating increased market activity. Selling spread across AI-related stocks, and the market's leading performers lost momentum.

In the Tokyo foreign exchange market, dollar-yen rose to the upper ¥157 range toward the end of the session before losing momentum, standing at around ¥157.93 as of 5 p.m. The euro was soft against both the yen and the dollar. Currency movements reflected risk aversion, with the yen and dollar both strengthening.

In the bond market, futures extended their sharp gains, while the yield on the newly issued 10-year government bond, a benchmark for long-term interest rates, was 2.635%, down 0.120 percentage points. The yield on the benchmark contract briefly fell to around 2.610%, its lowest level in 4.5 months.

Tokyo crude oil futures posted a sharp rebound for the first time in 4 days. The settlement price for the April 2027 Dubai crude oil futures contract, the most actively traded contract, was ¥86,670, up ¥2,690 from the previous day. Buying prevailed against a backdrop of WTI movements and a weaker yen and stronger dollar, while position-adjustment buying emerged ahead of the weekend.

Gold futures fell sharply. The settlement price for the most actively traded gold futures contract on the Osaka Exchange was ¥20,952, down ¥441 from the previous day. The decline widened on lower New York gold prices and as the impact of Middle East developments subsided, with deferred contracts at one point falling by more than ¥500.

Economic data showed that real wages in September rose 2.2% from a year earlier, prompting views that the pace of inflation would continue to slow.