Japanese equities sank amid indications of Democratic gains in Tuesday’s U.S. midterm elections, a scenario some strategists had said would weigh on artificial intelligence stocks.
The tech-heavy Nikkei 225 declined as much as 4.8%, with chip and AI-related shares from memory maker Kioxia Holdings?to MLCC maker Taiyo Yuden?slumping more than 13% and among the worst performers. The broader Topix index fell as much as 3.5%.
“Global equity markets have already begun pricing in the view that a Democratic advantage would create headwinds for AI-related stocks,” said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
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