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# Nikkei 225 Falls 1.42% on Nov 4, 2026 as AI Chip Stocks Slide
- URL: https://bullquill.com/japan-stocks-daily-brief-2026-11-04/
- Published: 2026-11-04T09:34:17.000Z
- Updated: 2026-11-04T09:34:17.000Z
- Description: Chip and AI shares dragged the Nikkei down as much as 4.84% while U.S. midterm votes were counted, before a recovery cut the loss to 1.42%. Yamato Holdings and Mitsubishi Corp rose on company news.
- Author: Rowan Ashby
- Tags: Markets, Daily Brief, Japan, Nikkei 225, TOPIX, SoftBank Group, Kioxia, Yamato Holdings, #lang-en, #tr-japan-stocks-daily-brief-2026-11-04

## Key takeaways

- The Nikkei 225 fell 1.42%, or 893.23 points, to 62,188.63 at the close (06:30 UTC) on Wednesday, Nov 4, 2026, according to Jiji Press and Yahoo Finance data.
- The index had dropped as much as 4.84% to 60,030.10 at 1:37 p.m. Tokyo time (04:37 UTC) as investors sold chip and AI-related shares while U.S. midterm votes were counted, Jiji Press reported.
- The broader TOPIX lost 0.89%, or 34.90 points, to 3,895.38 at the 06:30 UTC close; decliners outnumbered advancers by 2,649 to 903 on the Tokyo Stock Exchange, Investing.com reported.
- SoftBank Group fell 3.20%, Kioxia Holdings 5.38%, Tokyo Electron 3.42% and Advantest 3.36%, while Yamato Holdings jumped 11.54% and Mitsubishi Corp rose 7.88%, based on Yahoo Finance closing data.
- USD/JPY stood at 158.09 at 06:30 UTC, down 0.33% from the previous close, and the 10-year JGB yield closed at 2.822%, up from 2.775%.

## Session recap

Japanese stocks swung sharply on Nov 4, 2026, the first session after Tuesday's Culture Day holiday. The Nikkei 225 opened flat, slid more than 3,000 points by early afternoon to its lowest level since May, CNBC reported, then recovered about 70% of that loss to close 1.42% lower. For other regional sessions, see [Asian and global market closes](https://bullquill.com/markets/); the previous Tokyo session is covered in our [Nov 2 Japan brief](https://bullquill.com/japan-stocks-daily-brief-2026-11-02/).

The price-weighted Nikkei fell further than the market-cap-weighted TOPIX because heavyweight chip names such as Tokyo Electron, Advantest and SoftBank Group carry large weights in the Nikkei. Our [explainer on the Nikkei 225 vs TOPIX](https://bullquill.com/nikkei-225-vs-topix-difference/) covers how the two indexes are built. From its 60,030.10 low, the Nikkei recovered 2,158.53 points by the close. The Nikkei Volatility Index, which measures implied volatility from Nikkei 225 options, rose 5.62% to 35.72, Investing.com reported in its closing report.

| Instrument              | Close/Level | Change    | % change | As of (UTC)      | Source                    |
| ----------------------- | ----------- | --------- | -------- | ---------------- | ------------------------- |
| Nikkei 225              | 62,188.63   | −893.23   | −1.42%   | 2026-11-04 06:30 | Jiji Press; Yahoo Finance |
| TOPIX                   | 3,895.38    | −34.90    | −0.89%   | 2026-11-04 06:30 | Jiji Press; CNBC          |
| USD/JPY                 | 158.09      | −0.53     | −0.33%   | 2026-11-04 06:30 | Yahoo Finance             |
| Japan 10-year JGB yield | 2.822%      | +0.047 pt | +1.69%   | 2026-11-04 09:30 | Investing.com             |
| Nikkei 225 intraday low | 60,030.10   | −3,051.76 | −4.84%   | 2026-11-04 04:37 | Jiji Press; Yahoo Finance |

Notes: changes for the Nikkei and TOPIX are against the Nov 2 closes of 63,081.86 and 3,930.28\. The USD/JPY change is against Yahoo Finance's previous close of 158.62\. The JGB yield row uses Investing.com daily data retrieved at 09:30 UTC, compared with 2.775% on Nov 2\. Jiji Press quoted the dollar at 158.07-09 yen at 5 p.m. Tokyo time (08:00 UTC).

## What drove it

### AI and chip stocks led the sell-off

Jiji Press attributed the slide to heavy selling of semiconductor and AI-related stocks. During the session, CNBC's live blog reported SoftBank Group down more than 8%, Disco down 10.19%, Advantest down more than 8% and Tokyo Electron down 7.04%. Most of those losses were later pared. By the close, SoftBank Group was down 3.20% at 4,269 yen, Tokyo Electron down 3.42% at 9,663 yen and Advantest down 3.36% at 34,570 yen, Yahoo Finance data show.

The selling came even though U.S. chip stocks had risen the night before. Kabutan, in a midday report carried by Yahoo! Finance Japan, noted that AMD and Super Micro had beaten earnings expectations in U.S. after-hours trading, but Tokyo investors still turned risk-averse. It cited a strategist who suggested that selling linked to Nikkei futures may have added pressure. On Tuesday, Nov 3, the Nasdaq Composite rose 0.8% to 25,372.01 and the S&P 500 gained 0.4% to 7,568.92, according to RTTNews and the Associated Press.

### U.S. midterm results and AI regulation worries

Jiji Press reported that losses deepened in the afternoon as midterm votes were counted and reports showed Democrats in the lead. The agency noted that Democrats have proposed tighter rules on AI development and data center construction, which could reduce technology companies' capital spending. "As the election results have not been finalized yet, risk-averse selling is also intensifying," an official at a major securities company told Jiji. The Associated Press later reported that Democrats had won majorities in both houses of Congress. AP also cited Capital Economics as saying the near-term policy outlook changes little, because the party lacks a filibuster-proof Senate majority and President Trump can veto legislation.

### Kioxia extended its post-guidance slide

Kioxia Holdings closed 5.38% lower at 10,735 yen, after falling 15.78% on Nov 2\. The Associated Press tied the drop to October-December guidance that missed expectations. Kabutan reported that the stock had been down 11.6% at 10,035 yen by the midday break, testing the 10,000-yen level.

### Company news lifted Yamato and Mitsubishi Corp

Yamato Holdings rose 11.54% to 2,194.5 yen. Kabutan reported that U.S. fund Farallon Capital Management disclosed a 5.02% stake in a large shareholding report filed on Nov 2\. According to Kabutan, Farallon has proposed that Chairman Nagao step down from the board. Mitsubishi Corp gained 7.88% to 5,148 yen. Investing.com reported that the trading house's April-September net profit rose 74.2% to 619.6 billion yen, that it raised its full-year profit forecast to 1.2 trillion yen from 1.1 trillion yen, and that it announced a buyback of up to 1 trillion yen.

### Other heavy decliners

Mitsui Chemicals fell 10.34%, Taiyo Yuden 8.31% and Kyocera 7.40%, the session's biggest losers in Investing.com's closing report. The reports reviewed for this brief did not give company-specific reasons for those moves.

Elsewhere in Asia, South Korea's KOSPI rose 0.62% to 5,683.80, based on Yahoo Finance data. That figure matches the Associated Press report.

## Political & policy watch

- **U.S. midterms:** The Associated Press reported that Democrats won majorities in both the House and the Senate. Jiji Press highlighted Democratic proposals for tighter AI and data center rules as a concern for chip-related shares.
- **Bank of Japan:** The BOJ held its Oct 29-30 Monetary Policy Meeting and published its Outlook Report on Oct 30\. The BOJ's schedule lists the meeting's Summary of Opinions for Nov 10 and its next meeting for Dec 17-18.
- **U.S. yields:** The 10-year Treasury yield rose to 4.96% from 4.91%, the Associated Press reported in a story updated on Nov 4.

## What to watch next

| Date (2026)  | Event                                                                 | Source                       |
| ------------ | --------------------------------------------------------------------- | ---------------------------- |
| Nov 5 (Thu)  | BOJ minutes of the Sept 17-18 Monetary Policy Meeting                 | Bank of Japan                |
| Nov 10 (Tue) | BOJ Summary of Opinions from the Oct 29-30 meeting                    | Bank of Japan                |
| Dec 17-18    | BOJ Monetary Policy Meeting                                           | Bank of Japan                |
| Ongoing      | Final U.S. midterm counts and statements on AI and data center policy | Associated Press; Jiji Press |

For how the U.S. election result reaches Southeast Asian assets, see our [analysis of U.S. midterm results and ASEAN markets](https://bullquill.com/us-midterm-results-asean-markets/).

## Risk checklist for readers

- Intraday swings can be much larger than the closing change. On Nov 4 the Nikkei's low was 4.84% below the prior close, but it finished 1.42% lower.
- The Nikkei 225 is price-weighted, so a few high-priced chip stocks can move it more than the TOPIX. Comparing both indexes gives a fuller picture of the market.
- The Nikkei Volatility Index measures expected swings implied by option prices. A rise signals that traders are paying more for protection; it does not predict direction.
- For foreign investors, returns on Japanese shares also depend on the yen. A move of a few tenths of a percent in USD/JPY can offset or add to a stock's gain or loss.
- Scheduled BOJ releases and U.S. policy news can move both bond yields and exporters. Check the BOJ and Japan Exchange Group websites for official schedules and data.
- Reports during the session often differ from closing figures. Check closing data from the exchange or a primary data provider before drawing conclusions.

## Frequently asked questions

### Why did the Nikkei 225 fall on November 4, 2026?

The Nikkei 225 fell 1.42% to 62,188.63 on November 4, 2026 after heavy selling of semiconductor and AI-related shares, which Jiji Press said deepened as U.S. midterm votes were counted. SoftBank Group, Kioxia, Tokyo Electron and Advantest closed lower. The index had dropped as much as 4.84% during the session before recovering.

### Why was the Tokyo Stock Exchange closed on November 3, 2026?

November 3 is Culture Day, a national holiday in Japan, so Tokyo markets were closed. Trading resumed on Wednesday, November 4, 2026.

### What does the Nikkei Volatility Index measure?

The Nikkei Volatility Index reflects the volatility that traders expect, as implied by Nikkei 225 option prices. It tends to rise when markets fall sharply, as on November 4, 2026, when it rose 5.62% to 35.72\. It measures expected swings, not the direction of prices.

This article is for information only and is not investment advice.