Nikkei 225 closes 1.42% lower after sharp intraday slide
Published on 11/04/2026 at 22:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSNikkei rebounds after sharp sell-off
- The Nikkei 225 closed at 62,188.63 on November 4, down 893.23 points from Monday's close.
- The index briefly lost more than 3,000 points as technology and AI-related shares came under pressure.
- Investors focused on possible tighter US AI regulation and slower data-center investment after the US midterm elections.
- A late recovery reduced the day's losses as bargain hunters returned.
Tokyo's Nikkei 225 ended Wednesday's session at 62,188.63, down 893.23 points from Monday's close. The decline was equivalent to approximately 1.42%. Tuesday was a national holiday in Japan, so Monday provided the comparison session. The closing level and point change were reported by Jiji Press.
AI shares drive volatile session
The benchmark initially came under heavy pressure as vote counting in the US midterm elections pointed to Democratic majorities in both the House of Representatives and the Senate. Investors worried that a Democratic-led Congress could bring tighter scrutiny of artificial intelligence and data-center projects, potentially slowing capital investment and demand for related semiconductors.
According to Jiji Press, the Nikkei briefly lost more than 3,000 points during the session. Semiconductor and AI-related stocks were among the main areas of weakness, while selling pressure spread as market sentiment deteriorated. The morning close was 60,835.36, down 2,246.50 points from Monday.
Late buying narrows the decline
The index recovered a substantial part of its intraday losses in the afternoon. Jiji Press described the rebound as a result of bargain hunting after the sell-off had run its course, while noting that the day's decline was viewed by one securities official as an overreaction because a Democratic advantage had already been anticipated by some investors.
The broader TOPIX fell 34.90 points, or 0.89%, to 3,895.38, according to the Jiji closing report. The contrasting scale of the declines underscored the concentration of pressure in high-growth technology and semiconductor shares rather than a uniform retreat across the Tokyo market.
Investors will continue to assess whether election-related concerns about AI regulation translate into slower data-center spending or remain primarily a valuation-driven adjustment. The Nikkei 225 remains sensitive to global technology sentiment, but the sharp intraday recovery also showed that lower prices attracted buyers. Further market direction will depend on policy signals, corporate earnings and the next moves in the global AI trade. More coverage is available on the Nikkei 225 topic page.
