Influenced by the results of the U.S. midterm elections, Japan's benchmark Nikkei 225 Stock Average continued its steep decline on November 6, falling below the 60,000 threshold for the first time in about six months.

This marks the fifth consecutive day of declines for the Nikkei index.

On this day, the Nikkei index closed down 3,643.13 points (5.96%) at 57,434.77 on the Tokyo Stock Exchange.

The decline based on the closing price was the third largest in history.

By the morning session close, the drop from its record high of 72,366 recorded on June 25 exceeded 20%, bringing the index close to entering a bear market.

As the Democratic Party achieved a landslide victory in the U.S. midterm elections, concerns that artificial intelligence (AI) infrastructure investments would slow down triggered a global sell-off in semiconductor and AI-related stocks, which also spilled over into the Tokyo stock market.

In particular, heavy selling pressure concentrated on AI infrastructure-related stocks often referred to as AI pick-and-shovel plays, such as Tokyo Electron, Advantest, and Kioxia Holdings.

Additionally, the selling wave spread to non-AI stocks, including Toyota Motor, whose share prices had surged the previous day.

A source in the Tokyo stock market told NHK that economic slowdown concerns are also being raised as the so-called "triple red" scenario—where the U.S. president and majorities in both the Senate and the House of Representatives are held by the Republican Party—has collapsed.

The source stated, "As AI and semiconductor-related stocks have led the price increases in the Tokyo market thus far, caution is growing over how far the subsequent repercussions will spread."

Back in April, powered by heavy buying in major semiconductor stocks like Kioxia, power infrastructure, and physical AI stocks, the Nikkei index surpassed the 60,000 milestone at closing for the first time ever, drawing assessments that Japan's "lost 30 years" had come to an end.

(Photo: Yonhap News)