The Nikkei Stock Average fell sharply on the Tokyo market on November 6, dropping more than 4,000 points from the previous day's close at one stage and slipping below 60,000 for the first time since May 20, about six months ago.
The slide followed a rout in US stocks the day before, after the opposition Democratic Party won a landslide in the US midterm elections. Investors fear the result will lead to tougher regulation of artificial intelligence development, and AI and semiconductor-related shares led the selling in Tokyo.
The drop marks a reversal for an index that had climbed past 70,000 as recently as June, lifted by the global boom in AI-related stocks. Retail investors who bought into that run now hold shares in the companies bearing the brunt of the fall.