Tokyo, Nov. 4 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly lost over 3,000 points on Wednesday as investors sold artificial intelligence- and data-center-related stocks after vote counting in U.S. midterm elections pointed to Democratic majorities in both chambers of Congress, fueling expectations of tighter industry regulations. After recouping some of its losses, the index of 225 major stocks listed on the Tokyo Stock Exchange’s Prime section ended the day’s trading at 62,188.63, down 893.23 points, or 1.41 pct, from Monday’s close. The Tokyo market was closed on Tuesday for a national holiday. The broader TOPIX index finished down 34.90 points, or 0.89 pct, at 3,895.38. The Nikkei average gradually widened its losses as election results increasingly pointed to Democratic control of both chambers of Congress. AI- and data-center-related stocks were sold on concerns that tighter regulations advocated by Democrats could hamper capital investment in data centers. Some 70 pct of names on the Prime section in Tokyo lost ground, as “selling triggered further selling due to poor sentiment,” an official of a securities firm said. But the losses on Wednesday were “an overreaction, as Democrats’ dominance in the midterm elections had already been anticipated,” the official added. After selling ran its course, the Nikkei index pared its losses as bargain hunting emerged. END [Copyright The Jiji Press, Ltd.]
