Key facts
- The Nikkei was down 3.1% at 61,127.9 as of 0150 GMT, and the Topix fell 1.85% to 3,857.97, per The Globe and Mail.
- Kioxia fell 10%, SoftBank Group roughly 7%, Advantest 6.4% and Tokyo Electron 5%, per The Globe and Mail.
- Fujikura fell 8.2% and Furukawa Electric 9%, makers of fiber-optic cable used in data centers, per The Globe and Mail.
- Of the 225 Nikkei components, 130 fell and 95 rose, per The Globe and Mail.
- Prediction markets showed more than $1.48 billion wagered on the US midterms, per The Globe and Mail.
- Takamasa Ikeda of GCI Asset Management said Democratic seat gains fueled caution on stricter AI infrastructure rules.
Japan's Nikkei average was down 3.1% at 61,127.9 as of 0150 GMT on Wednesday, November 4, 2026, and the broader Topix fell 1.85% to 3,857.97, according to The Globe and Mail. The report attributed the decline to selling in AI-related shares on concern that Democratic gains in the US midterm elections could lead to stricter rules for data-center projects and slower AI infrastructure spending.
Kioxia Holdings fell 10%, SoftBank Group slipped roughly 7%, Advantest fell 6.4% and Tokyo Electron fell 5%, the report said. Makers of fiber-optic cable, a material used in data centers, also declined, with Fujikura down 8.2% and Furukawa Electric down 9%. Of the 225 Nikkei components, 130 fell and 95 rose.
Takamasa Ikeda, a senior portfolio manager at GCI Asset Management, said in the report: "Democrats are winning seats in some key states. That fuelled caution for stricter regulations on AI infrastructure investment." The report said prediction markets showed growing expectations of a Democratic sweep of Congress, with more than $1.48 billion wagered on the midterm elections.
Earlier Wednesday reporting by Dow Jones Newswires put the Nikkei down 2.9% and South Korea's Kospi 1.5% lower, with Taiwan's Taiex down 0.3% and Singapore's FTSE Straits Times Index off 1.2%. That report said the dollar softened to one-month lows and 10-year Treasury yields traded around 4.89%, their lowest since early September, while CME data showed futures tied to the Nasdaq index down about 1.8% and Bitcoin and Ethereum each fell over 1%.
The same report said Democratic Sen. Jon Ossoff won a key Senate race in Georgia. Mark Haefele, global wealth management chief investment officer at UBS Switzerland, said the election result may affect the path of fiscal negotiations but that growth, earnings and AI investment should remain more important drivers.