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# Nikkei 225 enters bear market, 20.6% below its June 2026 high
- URL: https://bullquill.com/nikkei-225-bear-market-ai-selloff/
- Published: 2026-11-07T00:11:56.000Z
- Updated: 2026-11-07T00:11:56.000Z
- Description: Japan's Nikkei 225 fell for five straight sessions to 57,434.77 on Nov 6, 2026, leaving it more than 20% below its Jun 25, 2026 record close as US AI regulation fears hit chip and AI shares.
- Author: Rowan Ashby
- Tags: Markets, Trending, Nikkei 225, SoftBank Group, Kioxia, Japan, #lang-en, #tr-nikkei-225-bear-market-ai-selloff

## Key takeaways

- The Nikkei 225 closed at 57,434.77 at the 15:30 JST close (06:30 UTC) on Nov 6, 2026, 20.63% below its record closing high of 72,366.34 on Jun 25, 2026, putting it in bear-market territory, according to Jiji Press and Yahoo Finance data.
- The index fell for five straight sessions, losing 11.17% from its Oct 29, 2026 close of 64,659.47, Yahoo Finance daily closes show.
- Jiji Press and Reuters both attributed the slide to fears that Democratic gains in the Nov 3, 2026 US midterm elections would lead to tighter US rules on AI and data centres, which hit AI-linked Japanese shares.
- The Nov 6, 2026 close was the index's first finish below 60,000 since May 20, 2026, and sits 12.02% below its 50-day average and 7.31% below its 200-day average, based on Yahoo Finance data.
- Southeast Asian markets were mixed on Nov 6, 2026: Singapore's STI fell 2.21% and Malaysia's FBM KLCI 1.18%, while Indonesia's IDX Composite rose 0.40%, according to Yahoo Finance closing data.

## Nikkei 225 bear market: what the numbers show

A bear market is commonly defined as a fall of 20% or more from a recent peak. The Nikkei 225 crossed that line on Friday, Nov 6, 2026, when it closed at 57,434.77, down 3,643.13 points or 5.96% on the day, Jiji Press reported. Measured against its Jun 25, 2026 closing high of 72,366.34, the index has lost 14,931.57 points. For a refresher on the terms, see our explainer on [market correction vs bear market](https://bullquill.com/market-correction-vs-bear-market/).

The week's session-by-session detail is covered in our [Nikkei 225 weekly brief for Nov 6, 2026](https://bullquill.com/japan-stocks-weekly-brief-2026-11-06/). This article looks at the longer trend: how far the index has fallen, where it now stands against its averages, and what the sources say is behind it.

## The trend in numbers

| Measure                                                 | Value                                           | Data as of (UTC) | Source                                          |
| ------------------------------------------------------- | ----------------------------------------------- | ---------------- | ----------------------------------------------- |
| Close, Nov 6, 2026                                      | 57,434.77                                       | 2026-11-06 06:30 | Jiji Press; Yahoo Finance                       |
| 1-session change                                        | −3,643.13 (−5.96%)                              | 2026-11-06 06:30 | Jiji Press                                      |
| Day range, Nov 6, 2026                                  | 56,745.81 to 60,374.35                          | 2026-11-06 06:45 | Yahoo Finance                                   |
| 5-session change (from Oct 29, 2026 close of 64,659.47) | −7,224.70 (−11.17%)                             | 2026-11-06 06:30 | Yahoo Finance                                   |
| 52-week closing high                                    | 72,366.34 (Jun 25, 2026); close is 20.63% below | 2026-11-06 06:30 | Yahoo Finance                                   |
| 52-week closing low                                     | 48,537.70 (Nov 19, 2025); close is 18.33% above | 2026-11-06 06:30 | Yahoo Finance                                   |
| 50-day simple average                                   | 65,281.00; close is 12.02% below                | 2026-11-06 06:30 | Bullquill calculation from Yahoo Finance closes |
| 200-day simple average                                  | 61,964.14; close is 7.31% below                 | 2026-11-06 06:30 | Bullquill calculation from Yahoo Finance closes |

The losing streak began before the US vote. Yahoo Finance closes show the index fell on each of the five sessions from Oct 30 to Nov 6, 2026; Tokyo was closed on Nov 3, 2026 for a national holiday.

| Session      | Close     | Change                | Source                    |
| ------------ | --------- | --------------------- | ------------------------- |
| Oct 29, 2026 | 64,659.47 | n/a (start of streak) | Yahoo Finance             |
| Oct 30, 2026 | 63,290.11 | −1,369.36 (−2.12%)    | Yahoo Finance             |
| Nov 2, 2026  | 63,081.86 | −208.25 (−0.33%)      | Yahoo Finance             |
| Nov 4, 2026  | 62,188.63 | −893.23 (−1.42%)      | Yahoo Finance             |
| Nov 5, 2026  | 61,077.90 | −1,110.73 (−1.79%)    | Yahoo Finance             |
| Nov 6, 2026  | 57,434.77 | −3,643.13 (−5.96%)    | Jiji Press; Yahoo Finance |

Most of the damage came in the final session. Friday's 5.96% drop accounted for roughly half of the 11.17% five-session decline. Jiji Press said the 3,643.13-point fall was the third-largest one-day point drop in the index's history, and Reuters said it was the Nikkei's biggest one-day decline since the April 2025 sell-off triggered by US "Liberation Day" tariffs.

## Why it is happening

### US AI regulation fears after the midterms

According to Jiji Press, AI-related shares were sold heavily on Nov 6, 2026 over concerns that US rules on AI could be tightened, after Democrats made major gains in the US midterm elections. Investors worried about stricter rules on building AI data centres and related facilities, Jiji Press reported. Reuters gave the same reason, reporting that investors feared the Democratic election wins would bring tighter US AI regulation.

Reuters added that concerns about the high cost of data centres and other AI infrastructure, and whether that spending will pay off, had put the AI trade under pressure. It reported that Texas Governor-elect Gina Hinojosa said on Nov 5, 2026 that the state would introduce laws to protect local communities from further data-centre build-out.

### Forced selling

Reuters reported that the pressure on AI stocks led to margin calls and unsettled retail investors and hedge funds. An official at a midsize securities firm told Jiji Press that the collapse of AI-related stocks, which had been driving the market, worsened investors' positions and dampened overall sentiment.

### Index structure amplified the fall

The Nikkei 225 is price-weighted, so high-priced chip and AI names have a large influence on its level. Jiji Press reported that SoftBank Group fell 10.83% and Kioxia 8.72% on Nov 6, 2026\. The broader TOPIX is weighted by market value instead, which is why the two benchmarks can diverge, as our [Nikkei 225 vs TOPIX explainer](https://bullquill.com/nikkei-225-vs-topix-difference/) describes. No other cause for the multi-session decline was identified in the exchange or news reports reviewed as of 00:07 UTC on Nov 7, 2026.

## Key levels being watched

- **60,000:** Jiji Press highlighted that the Nov 6, 2026 close was the first below 60,000 since May 20, 2026\. Yahoo Finance shows the May 20, 2026 close at 59,804.42.
- **72,366.34:** the Jun 25, 2026 record close, the reference point for the 20% bear-market measure.
- **Moving averages:** the 200-day average of 61,964.14 and the 50-day average of 65,281.00, calculated from Yahoo Finance closes as of Nov 6, 2026\. These are reference levels, not forecasts.

## Spillover to Southeast Asia

The sell-off spread across Asia on Nov 6, 2026, but ASEAN markets moved less than Tokyo. Reuters reported that MSCI's broadest index of Asia-Pacific shares outside Japan lost nearly 3%. Closing data from Yahoo Finance show:

| Index                           | Close, Nov 6, 2026 | Previous close | Change | Source                    |
| ------------------------------- | ------------------ | -------------- | ------ | ------------------------- |
| Nikkei 225 (Japan)              | 57,434.77          | 61,077.90      | −5.96% | Jiji Press; Yahoo Finance |
| Straits Times Index (Singapore) | 5,179.17           | 5,296.25       | −2.21% | Yahoo Finance             |
| FBM KLCI (Malaysia)             | 1,616.58           | 1,635.86       | −1.18% | Yahoo Finance             |
| IDX Composite (Indonesia)       | 5,050.43           | 5,030.26       | +0.40% | Yahoo Finance             |

The sources reviewed did not explain why Indonesian shares rose while Singapore and Malaysia fell. For how the US election result fed into regional assets earlier in the week, see [US midterm results and ASEAN markets](https://bullquill.com/us-midterm-results-asean-markets/), and for the US volatility spike, see [VIX jumps 70% as chip rout hits Singapore and Thai ETFs](https://bullquill.com/vix-jumps-70-percent-asean-etfs/).

## What we know and what we don't know yet

**What we know:** the Nikkei 225 fell for five straight sessions to Nov 6, 2026, closed more than 20% below its Jun 25, 2026 record close, and both Jiji Press and Reuters linked the slide to fears of tighter US AI and data-centre rules after the Nov 3, 2026 midterms.

**What we don't know yet:** how, or whether, the new US Congress will act on AI rules; whether Japanese authorities will respond to the market fall, as no such step was reported in the sources reviewed as of 00:07 UTC on Nov 7, 2026; and how much of the selling came from forced liquidation rather than a change in long-term views. A Jiji Press headline on Nov 6, 2026 said stock market turbulence was likely to continue into the following week.

## What it means

The move takes the Nikkei 225 from a record in June 2026 to a bear market in a little over four months, with the sharpest part of the decline packed into the first week of November 2026\. Because the index is price-weighted and heavy in chip and AI names, it is more exposed to swings in AI sentiment than the broader TOPIX. For ASEAN investors, the Nov 6, 2026 session showed that the shock reached Singapore and Malaysia, while Indonesia's market closed higher. Readers following the trend can compare the daily moves in our [Nikkei 225 brief for Nov 5, 2026](https://bullquill.com/japan-stocks-daily-brief-2026-11-05/).

## Frequently asked questions

### Is the Nikkei 225 in a bear market?

Yes, by the common 20% definition. The Nikkei 225 closed at 57,434.77 on November 6, 2026, which is 20.63% below its record close of 72,366.34 on June 25, 2026, based on Jiji Press and Yahoo Finance data.

### Why did the Nikkei 225 fall in early November 2026?

Jiji Press and Reuters reported that investors sold AI-related shares on fears that Democratic gains in the November 3, 2026 US midterm elections would bring tighter US rules on AI and data centres. Reuters also cited margin calls and concern about the cost of AI infrastructure.

### How much did the Nikkei 225 fall on November 6, 2026?

The Nikkei 225 fell 3,643.13 points, or 5.96%, to 57,434.77 on November 6, 2026\. Jiji Press said it was the third-largest one-day point drop on record and the first close below 60,000 since May 20, 2026.

### How did Southeast Asian stocks react to the Nikkei sell-off on November 6, 2026?

Singapore's Straits Times Index fell 2.21% and Malaysia's FBM KLCI fell 1.18% on November 6, 2026, while Indonesia's IDX Composite rose 0.40%, according to Yahoo Finance closing data.

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