The Nikkei 225 recorded a sharp decline of more than ¥4,000 at one point. Selling spread mainly across AI semiconductor-related stocks, while the US midterm election results and concerns over data-center regulation weighed on market sentiment.
The Nikkei 225 fell more than ¥4,000 from the previous day at one point, briefly slipping below the ¥57,000 range.
Trading was concentrated mainly in tech stocks, and selling of AI semiconductor-related stocks pushed the market lower. The day's moves strengthened the overall downtrend.
Amid turmoil in US markets, the possibility of regulation on data-center construction was raised following the US midterm election results, and market observers said selling spread across related stocks.
Market participants said the decline pointed to a move by investors away from AI-related stocks, while others viewed it as an overreaction and said attention was focused on future developments.