Key Facts
• November 5: Nikkei 225 closed at ¥50,212.27, down ¥1,284.93 from the previous day.
• The index briefly fell below the ¥50,000 mark, hitting a low of ¥49,073.58.
• AI and semiconductor stocks led the decline, with SoftBank, Advantest, and Tokyo Electron dragging the index down by ¥962.
• Toyota shares dropped over 3% after earnings failed to meet market expectations.
• Nintendo shares surged following strong earnings announced the previous day.
• TOPIX fell 1.26% to 3,268.29, while the Prime Market Index dropped 1.26% to 1,683.06.
• Trading volume on the Tokyo Stock Exchange reached ¥9.058 trillion.
• 11 out of 33 sectors, including construction and wholesale, saw gains, while 22 sectors, such as non-ferrous metals and IT, declined.
• Newly listed Classico on the Growth Market debuted at ¥3,270, closing at ¥3,515.
• Analysts attribute the decline to a correction after October’s sharp ¥7,400 rise in the Nikkei.
Summary
The Nikkei 225 experienced a sharp decline on November 5, closing at ¥50,212.27, down ¥1,284.93. The index briefly fell below the psychological ¥50,000 level, driven by sell-offs in AI and semiconductor stocks. Toyota’s over 3% drop, despite an upward earnings revision, and strong gains in Nintendo highlighted mixed corporate performance. Analysts view the decline as a healthy correction following October’s significant rally. TOPIX and other indices also fell, with trading volume reaching ¥9.058 trillion. Newly listed Classico performed strongly, closing at ¥3,515. Market sentiment remains cautious amid sectoral rotations and profit-taking.
