The Nikkei Average plunged in Tokyo trading after the public holiday. As election returns from the US midterm elections raised concerns about a "blue wave," the risk of tighter AI regulation emerged as a source of market anxiety.
The Nikkei Average plunged in Tokyo trading after the public holiday. After opening around the 2nd's close of ¥63,081, it extended its losses.
As counting progressed in the US midterm elections, market expectations grew that the Democratic Party could control both chambers of Congress, spreading concern about the risk of policy changes associated with a so-called blue wave.
In response, market participants accelerated selling, particularly in stock index futures, while concerns about tighter AI regulation also affected investment decisions.
In this market environment, a break below ¥60,000 for the Nikkei Average is also being contemplated, increasing uncertainty over the outlook.