Japanese stocks sink as U.S. midterm results hit tech shares
The tech-heavy Nikkei 225 declined as much as 4.8%, with chip and AI-related shares slumping more than 13% and among the worst performers.
Japanese stocks experienced a sharp decline following indications that the U.S. midterm elections would result in a Democratic victory, a prospect some analysts believed would negatively impact tech shares. The Nikkei 225, a tech-heavy index, plummeted by up to 4.8%, with individual chip and AI-related equities from Kioxia Holdings to Taiyo Yuden among the worst affected, plummeting over 13% and among the most significant losers.
The broader Topix index also fell by as much as 3.5%. According to Masahiro Yamaguchi, head of investment research at SMBC Trust Bank, "Global equity markets have already begun pricing in the view that a Democratic advantage would create headwinds for AI-related stocks."
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
