Nikkei 225 closes 1.79 percent lower at 61,077.90 as AI shares slide
Published on 11/05/2026 at 22:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSNikkei falls as AI shares slide
- The Nikkei 225 closed at 61,077.90 on November 5, down 1,110.73 points or 1.79 percent.
- Semiconductor and AI-linked stocks led the decline as investors assessed the prospect of tighter US regulation and slower data-center expansion.
- Most Nikkei constituents rose, while lower oil prices and gains in automakers and retailers supported the broader Japanese market.
The Nikkei 225 ended the Tokyo trading session on Thursday, November 5, at 61,077.90, down 1,110.73 points or 1.79 percent from Wednesday's close. The closing level was reported by Jiji Press at 15:31 Tokyo time. The index reached its lowest closing level since May 20 and recorded a fourth consecutive daily decline.
Technology stocks drive the decline
The main pressure came from semiconductor and AI-linked companies. Advantest, Tokyo Electron and SoftBank Group were identified by Adnkronos, citing Jiji Press as major contributors to the decline, together weighing on the index by about 1,800 points. The selling followed the US midterm elections, as investors considered whether a Democratic-controlled Congress could lead to tighter oversight of artificial-intelligence development and data-center construction.
The market's weakness was concentrated in the price-sensitive technology segment rather than being broad-based. Reuters, in a report carried by Fidelity, said 168 of the Nikkei's 225 constituents advanced, compared with 56 decliners and one unchanged issue. The report also said real estate, retail and pharmaceutical stocks were among the stronger groups, while investors shifted funds away from AI and semiconductor names.
Rotation supports the broader market
The contrasting performance of the broader market underlined the sector rotation. Jiji Press reported that the TOPIX rose 45.01 points, or 1.16 percent, to 3,940.39. Falling crude oil prices provided additional support for Japanese companies because Japan imports most of its energy, while automakers and retailers benefited from buying interest. This divergence means the Nikkei's decline should not be read as a uniform retreat across Japanese equities: its price-weighted structure left it particularly exposed to sharp moves in high-priced technology shares.
For investors, the immediate focus remains whether concerns about AI capital spending and possible regulation spread beyond semiconductor-related companies. Reuters also reported that market participants viewed the strategic US-China competition as a reason why data-center construction could continue, even while the pace and valuation of the current AI investment cycle remain under scrutiny.
Further coverage of the Nikkei 225 is available in the index topic section.
