The Nikkei stock average closed at 62,188.63 on the Tokyo market on November 4, down 893.23 points, or 1.42%, from the previous trading day's close. During the session it fell more than 3,000 points and came within 30 points of dropping below 60,000, before recovering.
Reports in the morning that the Democratic Party held the advantage in the US midterm elections sent AI and semiconductor shares lower. The party was seen as willing to regulate AI, the sector that has driven share prices in Japan and the US.
The decline continued into the afternoon, and the average touched 60,030.10, leaving a fall below 60,000 in sight.
The market then reversed. US media reported that President Trump had said he would "gladly accept" the election results, and relief that post-election disruption could be avoided spread through the market, narrowing the losses.
The swing left the benchmark down 1.42% on the day, with the intraday plunge and partial recovery both driven by the US vote rather than by Japanese corporate earnings or domestic data.