Tokyo stocks sink as yen rises after US midterms

· Politics · Japan

Japanese stocks fell as investors digested the US midterm elections, with the tech-heavy Nikkei 225 declining as much as 4.8% and chip and AI-related shares slumping more than 13%, among the worst performers. The yen rose against the dollar as investors weighed political gridlock in Washington and its implications for US policy. The blue wave in Congress rattled Japanese tech shares, which had rallied on expectations of continued US AI spending.

Why it matters：Japan's markets are highly sensitive to US tech and policy shifts, making the election's aftermath a test of whether the AI-driven rally can hold.

Key points

  • Nikkei 225 fell as much as 4.8%
  • Chip and AI shares slumped more than 13%
  • The yen strengthened against the dollar

Sources (original reporting)

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