In brief
Tokyo shares slid on Friday as investors worried about the upcoming U.S. midterm elections and a Japanese holiday. The Nikkei fell 0.33% to 63,081.86, while the broader Topix dropped 0.88% to 3,930.28, with AI‑related stocks dragging the market.
Tokyo shares ended lower on Monday, November 2, as investors grew cautious ahead of the United States midterm elections and a Japanese market holiday on Tuesday.
The benchmark Nikkei Stock Average slipped 208.25 points, or 0.33 percent, to 63,081.86, marking a decline from Friday’s close.
The broader Topix index, meanwhile, finished 34.79 points, or 0.88 percent, lower at 3,930.28.
After opening lower, the Nikkei briefly dipped into positive territory as heavyweight stocks, including Advantest and Tokyo Electron, attracted buying following the index’s more than 2‑percent decline on Friday.
However, the benchmark later retreated into negative territory and ended the session slightly lower, reaffirming a risk‑averse stance among market participants.
The Topix was also weighed down by declines in AI‑related stocks, amid growing concerns over the sustainability and profitability of massive investments in artificial intelligence, analysts said.
With the U.S. midterm elections looming, investors everywhere have been reassessing the political outlook and its potential impact on corporate earnings and regulatory policy.
Market participants are also bracing for the next Japanese trading day to be a holiday, which can further limit liquidity and trading volume.
As a result, risk‑aversion grew, causing a pullback across most sectors in the Tokyo market, particularly those tied to technology and industrial equipment.
At mid‑session, the Nikkei briefly recovered as heavyweights rallied, but the pullback outpaced the gain, leaving the index at a lower close.
Analysts note that the heavy swings at key tech names have heightened volatility across the index, counteracting the broader market’s muted performance.
While Tokyo’s tech giants showed some resilience, the broader market’s downturn reflects a wider shift toward defensive positioning in anticipation of U.S. political uncertainty and a forthcoming Japanese holiday.
