Japanese Share Decline as Tech Rout Persists

2026-11-04 01:09 By Jam Kaimo Samonte 1 min. read

The Nikkei 225 Index dropped more than 3% to below 61,000 on Wednesday as markets reopened after a holiday, sinking to three-month lows, with technology stocks facing renewed selling pressure amid lingering concerns over the sustainability of the AI trade.

Japanese equities also followed declines in US futures as early election polls pointed to a possible Democratic takeover of the House of Representatives and possibly the Senate.

Investors are concerned that a potential Democratic sweep could result in stricter AI regulations and greater corporate oversight.

Given the significant exposure of Japanese companies to the global AI expansion, the sector remains particularly sensitive to shifts in investor sentiment.

Technology and AI-related stocks led the losses, with sharp losses from Kioxia Holdings (-6.7%), Advantest (-4.2%), Tokyo Electron (-3.3%), Lasertec (-3%)a nd Taiyo Yuden (-9.6%).



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