In brief
The Nikkei fell 0.33% to 63,081.86 and the Topix dropped 0.88% to 3,930.28. Investors were concerned about AI investments and the impact of U.S. midterm results on risk appetite.
Tokyo stocks ended lower on Monday as investors grew cautious ahead of the U.S. midterm elections and a Japanese market holiday on Tuesday.
The benchmark Nikkei, the 225‑issue stock average, fell 208.25 points, or 0.33 percent, to 63,081.86. The move followed a more than 2‑percent decline on Friday, though the index briefly tacked on gains after heavy‑weight buyers, including Advantest and Tokyo Electron, stepped in.
The broader Topix index finished 34.79 points, or 0.88 percent, lower at 3,930.28. This decline was reflected across a wide swath of the market, as many sectors rallied less strongly than the heavyweights that briefly helped the Nikkei recover during the session.
Analysts noted that AI‑related stocks were among the worst performers, with investors weighing the sustainability and profitability of large capital outlays on artificial intelligence. The slide in AI exposure was said to be a distinct factor dragging down the overall market mood.
With a holiday scheduled for Japanese exchanges on Tuesday, market participants largely held positions at close, awaiting fresh cues from the unfolding U.S. elections and the sentiment they might bring to international markets.
Overall, the session illustrated persistent risk aversion among investors, as the fear of changing U.S. political dynamics and concerns over AI investment returns outweighed short‑term buying in the Japanese markets.
