Following the sharp decline in US markets after the US midterm election results, the Tokyo market saw a broad-based sell-off and the Nikkei Average fell below ¥60,000. AI- and semiconductor-related stocks fell particularly sharply, and market turmoil spread across global equity markets.
The Nikkei Average closed on the 6th at ¥57,434.77, down ¥3,643.13 from the previous day, falling below the key ¥60,000 level. South Korea's KOSPI and Taiwan's TAIEX also declined, and the turmoil in equity markets spread worldwide.
The Nikkei Average's decline was among the three largest on record, and the index was in the midst of a five-trading-day losing streak. The cumulative decline during that period exceeded approximately ¥7,200, while the decline on the 6th exceeded ¥4,300 from the previous close at one point.
AI- and semiconductor-related stocks, including SoftBank Group and Kioxia Holdings, fell sharply amid concerns that the US Democratic Party would tighten regulations on data center development and AI development. 98% of stocks on the TSE Prime Market declined.
The TOPIX, or Tokyo Stock Price Index, fell 232.40 points to 3,707.99 at the close. The Yomiuri Index fell for the first time in 2 days to ¥49,089.67. With uncertainty over US-China relations persisting, concerns were raised that the broad-based sell-off in the Tokyo market could be prolonged.