In brief
Tokyo’s Nikkei fell 1.79% as a tech sell‑off wiped out gains, while the Topix edged up 1.16%. Investors blamed the Democratic victory in the U.S. for possible tighter data‑center rules, driving AI and semiconductor shares lower. Other sectors, including consumer and finance, saw buying interest after the election outcome became clear.
Tokyo stocks ended mixed on Thursday as investors sold technology shares and pivoted to other sectors amid concerns over data centre construction following the Democratic victory in both chambers of the U.S. Congress in the mid‑term elections, Xinhua reports. The benchmark Nikkei fell 1,110.73 points, a 1.79% drop, ending at 61,077.90, while the broader Topix gained 45.01 points, a 1.16% rise, closing at 3,940.39.
Early trade on the Nikkei lifted the index to positive territory before shifting lower as shares tied to artificial intelligence and semiconductors came under pressure, Xinhua noted. Dealers attributed the sell‑off to worries that the U.S. election outcome could lead to tighter restrictions on data centre construction, which would affect Japan’s technology firms.
While the tech sell‑off weighed on the larger market, other segments saw buying interest. Xinhua said that consumer and financial stocks received support after the election results were clarified, reflecting relief among investors as the outcomes of the U.S. midterm elections became clear.
Analysts were quick to point out that the Nikkei’s decline was driven almost entirely by a slump in artificial‑intelligence and semiconductor stocks, with the technology sector shedding gains across the day. The shift to other sectors, particularly consumer and finance, helped cushion the broader index’s overall performance and kept the Topix on an upward trajectory.
