Japan's Nikkei falls 3.56% to lowest since July 29
Business
Japan's Nikkei index slid 3.56% on Wednesday, hitting its lowest level since July 29.
The main reason? AI-focused stocks like SoftBank Group and Tokyo Electron tumbled, as investors worried about possible new regulations following the US midterm election results.
Investors cautious over possible AI rules
Unexpected Democratic wins in the US have made investors nervous about stricter rules for AI companies.
Takamasa Ikeda, a senior portfolio manager at GCI Asset Management, said people are being extra cautious right now.
Even fiber-optic makers like Fujikura and Furukawa Electric saw their shares drop.
One bright spot: Fast Retailing (Uniqlo's parent) managed a small gain, but overall market mood stayed downbeat.