Nikkei slides to 3-month low as AI stocks tumble on US election jitters
EWJ•Japan’s Nikkei fell 3.56% to 60,835.36 at the midday break, its lowest level since July 29, as AI-related shares dropped on concerns about tighter US regulation and slower infrastructure spending.
1. Nikkei hits three-month low
The Nikkei fell 3.56% to 60,835.36 by the midday break on Wednesday, its lowest level since July 29. The broader Topix slipped 2.45% to 3,832.27.
2. AI shares lead declines
Investors were concerned that Democratic gains in US midterm elections could bring stricter oversight of AI infrastructure and slow spending on data-centre projects. Advantest fell 7.8%, Tokyo Electron dropped 6.28%, SoftBank Group slipped roughly 9% and Kioxia declined 11.55%. Fujikura and Furukawa Electric fell 8.49% and 9.66%, respectively.
3. Earnings offer support
A stronger-than-expected Democratic advance is a headwind for Japanese technology shares, strategist Kazuaki Shimada said, while strong earnings and outlooks from Advantest and Tokyo Electron should help underpin valuations. Fast Retailing rose 1.21% and provided the biggest support to the Nikkei.
