Japan Market Daily | Kabutaro & Friends

On November 4, the Nikkei 225 fell for a third straight session on the Tokyo stock market, closing at 62,188.63, down 893.23 yen (1.42%) from the previous day. TOPIX also fell 34.90 points to 3,895.38. As vote counting in the U.S. midterm elections showed the Democratic Party, seen as favoring AI regulation, in the lead, concerns that tighter regulation would slow investment by major cloud companies triggered heavy selling of semiconductor and AI-related stocks, and the Nikkei 225's loss briefly exceeded 3,000 yen. In the afternoon, reports that the Democrats had won majorities in both chambers of Congress prompted buying on the view that the uncertainty had passed, narrowing the decline. Advantest and Tokyo Electron together dragged down the Nikkei 225 by about 431 yen, and Kioxia Holdings and SoftBank Group also fell sharply. On the other hand, Mitsubishi Corporation, which reported earnings, IHI, which raised its forecast, and Fast Retailing were bought. About 70% of stocks on the TSE Prime Market declined, and trading value on the TSE Prime Market swelled to about 10.81 trillion yen.