Nikkei 225 falls 1.79% as AI and chip stocks slide to five-month low
Published on 11/05/2026 at 18:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSNikkei ends fourth day lower
- The Nikkei 225 closed at 61,077.90 on November 5, down 1,110.73 points, or 1.79 percent, from Wednesday.
- AI and semiconductor shares fell sharply on concerns that a Democratic U.S. midterm victory could bring tighter technology regulation.
- The broader TOPIX rose 1.16 percent as investors rotated toward sectors including autos, retail and real estate.
The Nikkei 225 closed at 61,077.90 on Thursday, November 5, 2026, falling 1,110.73 points, or 1.79 percent, from Wednesday's close. The decline marked the benchmark's fourth consecutive losing session and brought it to its lowest closing level since May 20, according to Jiji Press.
AI concerns weigh on index
Technology and semiconductor stocks were the main drag on the price-weighted index. A report carried by Adnkronos, citing Jiji Press, said investors were concerned that the Democratic sweep in the U.S. midterm elections could lead to tighter rules for artificial intelligence. Advantest, Tokyo Electron and SoftBank Group together reduced the Nikkei by about 1,800 points, according to the report.
The move was narrow rather than broad-based. Jiji Press reported that the TOPIX gained 45.01 points, or 1.16 percent, to 3,940.39. Toyota Motor and Fast Retailing were among the gainers, while funds shifted from AI-related names toward other areas of the market.
Rotation visible across sectors
Reuters reported that lower crude oil prices and easing political uncertainty after the U.S. elections supported buying in retail and real estate. Its market report said 168 of the Nikkei's 225 components advanced, compared with 56 decliners and one unchanged stock. Even with that breadth, the index's concentration in large technology names left it vulnerable to losses in a small group of heavily weighted shares.
For investors, Thursday's session highlights the difference between index performance and market breadth. The Nikkei's decline reflected pressure on AI-linked and semiconductor companies, while the positive TOPIX close pointed to stronger performance in several other segments. The next session's direction will depend in part on whether the technology sell-off broadens or buying returns to the sector. Further Nikkei 225 coverage is available on the Nikkei 225 topic page.
