TOKYO –
Japan’s Nikkei 225 Stock Average closed at 62,188.63 on Wednesday, November 4, 2026, falling 893.23 factors, or 1.42%, from the earlier buying and selling session as heavy promoting in semiconductor and synthetic intelligence-related shares swept by Tokyo markets following the U.S. midterm elections, though a robust afternoon restoration helped the benchmark recuperate a lot of its earlier losses.
The Nikkei suffered its third consecutive decline after buying and selling resumed following the November 3 Culture Day vacation. The benchmark opened at 62,973.16, briefly moved into optimistic territory, after which plunged as traders diminished publicity to expertise shares and different corporations weak to adjustments in U.S. financial and regulatory insurance policies. By the 11:30 a.m. morning shut, the index had fallen 2,246.50 factors, or 3.56%, to 60,835.36, whereas the broader TOPIX index dropped 98.01 factors to three,832.27.
Selling intensified through the early afternoon, with the Nikkei approaching the psychologically vital 60,000-point degree earlier than discount hunters entered the market. The restoration gathered momentum later within the session, decreasing the benchmark’s losses to 1,206 factors by 3 p.m. and persevering with into the shut.
Semiconductor testing gear maker Advantest was among the many largest contributors to the decline, alongside Tokyo Electron, SoftBank Group, Kioxia Holdings and Kyocera. Investors had been involved that elevated scrutiny of main expertise corporations and tighter rules on synthetic intelligence following the U.S. elections may have an effect on spending on information facilities and superior semiconductors. Selling additionally mirrored unease over excessive valuations following the substantial positive aspects recorded by expertise shares earlier within the yr.
Other expertise and industrial corporations, together with Sumitomo Electric Industries, Furukawa Electric, Taiyo Yuden and Murata Manufacturing, got here beneath strain. Nonferrous metals, petroleum and coal merchandise, mining and electrical gear had been among the many weakest sectors, whereas airways, actual property corporations and railway operators attracted selective shopping for.
Fast Retailing, the operator of Uniqlo, supplied assist for the Nikkei, whereas Nintendo and Yamato Holdings additionally attracted patrons. Yamato benefited from news that U.S. funding fund Farallon Capital Management had acquired a 5.02% stake and was urgent for administration adjustments.
Currency markets had been risky as traders responded to the U.S. election developments and actions in American bond yields. The dollar traded as excessive as 158.74 yen earlier than falling to round 157.40 yen, then recovering above 158 yen throughout afternoon buying and selling. The stronger yen earlier within the session added strain to exporters by decreasing the yen-denominated worth of abroad earnings.
Corporate earnings supplied a contrasting image of Japan’s economic system, with a number of main buying and selling homes reporting substantial revenue will increase and elevating their full-year forecasts regardless of the weak point in fairness markets.
Mitsubishi Corporation reported a 74.2% enhance in internet revenue to 619.6 billion yen for the six months by September, supported by a 20.5% enhance in income to roughly 10.41 trillion yen. The firm raised its internet revenue forecast for the fiscal yr ending March 2027 by 9.1%, from 1.1 trillion yen to 1.2 trillion yen, placing it on target for a report annual revenue and its first new earnings excessive in 4 years. Profit for the July-September quarter greater than doubled to 321.1 billion yen.
Mitsui & Co. additionally delivered robust outcomes, reporting a 35.7% enhance in first-half internet revenue to 574.9 billion yen as income rose 23.1% to eight.32 trillion yen. The buying and selling home raised its annual internet revenue forecast by 14.1%, from 920 billion yen to 1.05 trillion yen, representing anticipated development of 25.9% from the earlier fiscal yr.
Itochu Corporation reported a 16% enhance in first-half internet revenue to 580.5 billion yen, with income rising 9.4% to 7.93 trillion yen. Profit for the July-September quarter elevated 32.5% to 286.7 billion yen. The firm maintained its full-year internet revenue forecast of 950 billion yen, having already achieved 61.1% of the annual goal through the first six months.
Marubeni raised its full-year internet revenue forecast by 8.6% to 630 billion yen after reporting a ten.6% enhance in first-half revenue to 338 billion yen. The firm additionally elevated its deliberate annual dividend from 115 yen to 125 yen per share, reflecting expectations of one other report earnings yr.
Outside the buying and selling sector, telecommunications group NTT reported a 16% decline in first-half internet revenue to 500.2 billion yen regardless of an 8.7% enhance in income to roughly 7.36 trillion yen. Operating revenue fell 12.2%, reflecting strain on profitability, though the corporate elevated its full-year internet revenue forecast barely to 994 billion yen from 980 billion yen. The revised forecast nonetheless represents a decline of 4.1% from the earlier fiscal yr.
Industrial equipment and aerospace producer IHI reported a 52% enhance in first-half internet revenue to 85 billion yen, with working revenue rising 65.6%. The firm raised its annual internet revenue forecast by 7.6% to 185 billion yen, extending expectations for a 3rd consecutive yr of report earnings. It additionally elevated its deliberate annual dividend by 2 yen to 25 yen per share.
The divergence between robust company earnings and falling share costs highlighted the more and more cautious sentiment amongst traders, notably towards corporations uncovered to the worldwide expertise funding cycle. Although Japanese buying and selling homes continued to profit from diversified worldwide operations, traders remained delicate to potential adjustments in U.S. commerce, taxation and expertise insurance policies following the midterm elections.
Attention is now turning to a different main spherical of company earnings on November 5, together with Toyota Motor, Nintendo, Nippon Steel, Daikin Industries and several other different main Japanese corporations. Their outcomes and earnings forecasts are anticipated to offer additional indications of whether or not bettering company profitability can assist Japanese equities following the latest market correction.