In brief
Tokyo’s Nikkei and Topix slipped on Monday in a risk‑aversion rally ahead of U.S. midterm elections. Even heavyweights like Advantest and Tokyo Electron little helped the market, amid concerns over AI investments and a sharp U.S. tech rout. Analysts cited rising semiconductor anxieties and a looming Japanese market holiday as catalysts for the decline.
Tokyo’s trading session on Monday, Nov. 2, 2026, saw the benchmark Nikkei slump 208.25 points, a 0.33 percent drop, to 63,081.86, while the broader Topix index fell 34.79 points, 0.88 percent, to 3,930.28.
According to Xinhua, investors stayed cautious ahead of the U.S. midterm elections and a Japanese market holiday scheduled for the following Tuesday. The Nikkei briefly climbed into positive territory early in the trade, helped by buying in heavyweights such as Advantest and Tokyo Electron, but it later retraced and ended slightly lower.
In the same session, AI‑related stocks withdrew momentum, with analysts pointing to growing fears over the sustainability and profitability of large‑scale artificial‑intelligence investments.
BloomingBit noted that the Japanese market decline also reflected a sharp drop in U.S. tech stocks and heightened concerns over semiconductor earnings, adding that this global risk‑off sentiment contributed to the fall in Tokyo shares.
The market was scheduled to close early for a holiday on Tuesday, and the overall risk‑off mood suggests investors are awaiting U.S. election outcomes before re‑entering the market.
