Japan's Nikkei ended 1.42% lower at 62,188.63 after falling as much as 4.8%, while the 10-year government bond yield rose 3.5 basis points to 2.805%. Investors unwound positions after President Donald Trump's election remarks were milder than expected.
The Nikkei ended Wednesday down 1.42% at 62,188.63, after dropping as much as 4.8% to its lowest since May 20. The broader Topix fell 0.89% to 3,895.38. Investors had sold stocks and bought bonds ahead of the US election, but unwound those positions after Trump accepted the results and made softer-than-expected remarks.
Japanese AI-related shares fell earlier in the session on concerns that Democratic gains could bring tighter regulation of data-centre projects and slower AI infrastructure spending. Advantest and Tokyo Electron each ended 3% lower, SoftBank Group fell 3%, and Fujikura and Furukawa Electric dropped 5.64% and 6.19%, respectively.
The 10-year Japanese government bond yield rose 3.5 basis points to 2.805%, after reaching 2.77% earlier, while the 30-year yield climbed 5 basis points to 3.925%. Sumitomo Mitsui Trust Asset Management strategist Katsutoshi Inadome said a Democratic win could lower US bond yields if slower AI spending reduced bond issuance.
