The Nikkei Stock Average fell more than ¥4,000 at one point, breaking below the ¥60,000 milestone. Concerns about the outlook for AI-related data-center investment also spread in the US market, sending the Dow sharply lower.
The Nikkei Stock Average plunged in the Tokyo stock market, falling more than ¥4,000 from the previous day's close at one point and breaking below the ¥60,000 milestone. The intraday decline was at a level not seen in about 5 months, as selling prompted by developments in the US market spread to Tokyo.
In the New York stock market, the Dow Jones Industrial Average ended at $51,523.06, down $1,833.06 from the previous day, with declines in technology stocks such as major semiconductor company Nvidia standing out. The view that concerns about the outlook for AI data-center investment were behind the declines became widespread.
The Democratic Party's securing a majority in both chambers of Congress in the midterm elections fueled speculation that the possibility of tighter AI regulation had increased, contributing to the spread of weakness in AI-related stocks across the broader market. The article says expectations for expanded data-center investment had driven the market, and reports that regulatory developments could affect its future direction.
Following developments in the New York market, attention in the Japanese and US equity markets remains focused on concerns over the profitability of data-center investment and regulatory developments. The article is behind a paywall, with the rest available to paid subscribers.