Tokyo Shares Tumble Wednesday Despite Strong Corporate Earnings
Japan's Nikkei 225 Stock Average closed at 62,188.63 on Wednesday, November 4, 2026, falling 893.23 points, or 1.42%, from the previous trading session as heavy selling in semiconductor and artificial intelligence-related stocks swept through Tokyo markets following the U.S. midterm elections, although a strong afternoon recovery helped the benchmark recover much of its earlier losses. (News On…
Tokyo's Nikkei 225 Stock Average plummeted 1.42% on Wednesday, November 4, 2026, closing at a three-month low of 62,188.63 points. The sharp decline followed heavy selling in the semiconductor and artificial intelligence sectors, sparked by the U.S. midterm elections. Despite a brief recovery in the afternoon, the benchmark index reverted to its downward trajectory, marking its third consecutive decline.
The sell-off intensified during early afternoon trading, with the Nikkei edging closer to the psychologically significant 60,000-point level before bargain hunters entered the market. The recovery, however, was short-lived, and the index lost 1,206 points by 3 p.m., ultimately falling 2,246.50 points, or 3.56%, to 60,835.36 by the close.
Semiconductor testing equipment maker Advantest, along with Tokyo Electron, SoftBank Group, Kioxia Holdings, and Kyocera, were among the major contributors to the decline. Investors were worried about potential scrutiny of major technology companies and tighter regulations on artificial intelligence following the U.S. elections, which could impact spending on data centers and advanced semiconductors.
Other affected industries included nonferrous metals, petroleum and coal products, mining, and electrical equipment, while airlines, real estate companies, and railway operators saw selective buying. Fast Retailing, the operator of Uniqlo, and Nintendo also attracted buyers, while Yamato Holdings gained support from a 5.02% stake acquisition by U.S. investment fund Farallon Capital Management, who was pushing for management changes.
Corporate earnings, however, provided a stark contrast to the falling share prices. Major trading houses such as Mitsubishi Corporation, Mitsui & Co., and Itochu Corporation reported substantial profit increases and raised their full-year forecasts. These results were expected to potentially push them towards record annual profits, putting them on course for a new earnings high in four years.
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