Japan's Nikkei drops 3% as Democratic gains in US midterms hit AI stocks
SPY•Japan's Nikkei fell 3.1% to 61,127.9 as AI-linked shares slid on concerns that Democratic gains in US midterm elections could bring stricter rules for data-centre projects and slow AI infrastructure spending.
1. AI-linked shares fall
The Nikkei was down 3.1% at 61,127.9, while the broader Topix fell 1.85% to 3,857.97. Advantest fell 6.4%, Tokyo Electron lost 5%, SoftBank Group slipped roughly 7% and Kioxia dropped 10%.
2. Data-centre suppliers slide
Fujikura and Furukawa Electric, makers of fibre-optic cables used in data centres, fell 8.2% and 9%, respectively. Investors were concerned that Democratic gains in the US midterms could lead to stricter regulation of AI infrastructure investment, said GCI Asset Management portfolio manager Takamasa Ikeda.
