In Tokyo trading on the 6th, the Nikkei 225 temporarily fell below the ¥60,000 threshold, declining by more than approximately ¥4,000 from the previous day. Reports said that developments in AI regulation and the results of the US midterm elections affected market sentiment.
The Nikkei 225 plunged after the market opened, falling sharply from the previous day's close. At one point, the decline exceeded approximately ¥4,000, pushing the index below the ¥60,000 threshold. The article described the move as a major market reaction and explained that it was driven in part by growing caution toward holding AI-related stocks.
The possibility that the Democratic Party's victory in the US midterm elections affected the market has been cited as a factor behind the decline. Market participants said that although this did not immediately constitute a “180-degree turnaround,” concern about the sustainability of AI investment had increased and the market was prone to overreact to negative factors. The article also suggested that the Democratic Party might regulate AI excessively, while reporting that the market reaction had come before any discussion of the likelihood of such a policy.
The article also touched on developments in the semiconductor market, reporting that views on the sustainability of the AI boom were being picked up by the market as a negative factor. A series of developments perceived as negative for the market, including the victory of the Democratic candidate in the Texas gubernatorial election, had been reported in the news. These multiple factors combined to strengthen short-term downward pressure, according to the report.