American Marconi Wireless News - Nikkei Falls 1.42% as AI Sector Faces Pressure Post-US Elections

Japan’s benchmark Nikkei stock index declined 1.42% to close at 62,188.63 on Monday, driven by renewed skepticism toward artificial intelligence stocks. The drop followed reports that Democrats had won control of both chambers of the U.S. Congress in midterm elections, raising concerns about future AI regulation.

The Nikkei 225 fell 893.23 points during the session, briefly dropping more than 3% before recovering slightly. The broader Topix index, which tracks larger-cap companies, receded 0.89% to finish at 3,895.38.

Investors reacted to the political shift in Washington, where progressive lawmakers are expected to push for stricter oversight of AI development. This regulatory outlook weighed heavily on technology and semiconductor firms that have benefited from recent market enthusiasm.

Memory chip maker Kioxia dropped 5.38%, while Fujikura, a supplier of cables for data centers, fell 5.64%. SoftBank Group, a major global investor in AI ventures, declined 3.2%.

Semiconductor equipment makers also faced losses. Disco fell 5.71%, Tokyo Electron dropped 3.42%, and Advantest decreased 3.35%.

In other sectors, Toyota slipped 0.75%, while its rival Nissan rose 0.88%. Sony declined 0.83%, but Fast Retailing, the parent company of Uniqlo, gained 2.67%.

P.Mathewson--AMWN