Affected by the US midterm election results, the Nikkei in the Tokyo market fell more than ¥3,000 at one point on concerns over the outlook for AI investment. Buybacks entered the market in the afternoon, and it closed down ¥893 at ¥62,188.
Against the backdrop of the US midterm election results, selling increased in the Tokyo market, particularly in AI and data-center-related stocks, and the Nikkei fell sharply from the morning. As reports emerged that Democrats were leading, the decline widened, exceeding ¥3,000 at one point in the afternoon.
Subsequently, as speculation spread that a Democratic sweep of both houses of Congress, or a “blue wave,” was becoming certain, buying back into the market emerged and the decline narrowed toward the end of the session. The Nikkei ultimately closed down ¥893 at ¥62,188.
While experts pointed to the possibility of a shift in the direction of the US economy, they expressed concern that regulatory developments concerning AI and data centers could become a factor driving the market. Hirotake Tsuboi (坪井 裕豪), chief strategist at Daiwa Securities, commented, “I think policy will become more moderate as it seeks to strike a balance.”
The government stated that, regardless of the midterm election results, it would “continue to monitor developments with a high degree of vigilance.”