TOKYO - The benchmark Nikkei stock index briefly fell more than 7 percent Friday morning, dropping below the 60,000 line for the first time since May, amid renewed concern over artificial intelligence regulations following the U.S. midterm elections.
The 225-issue Nikkei Stock Average fell 3,219.29 points, or 5.27 percent, from Thursday to 57,858.61. The broader Topix index was down 213.89 points, or 5.43 percent, at 3,726.50.
The U.S. dollar strengthened to the upper 158 yen range in Tokyo amid growing uncertainty over the situation in the Middle East.
At noon, the dollar fetched 157.87-89 yen compared with 157.62-72 yen in New York and 158.18-20 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.1206-1206 and 176.91-93 yen against $1.1215-1225 and 176.80-90 yen in New York and $1.1242-1243 and 177.83-87 yen in Tokyo late Thursday afternoon.
Stocks tracked overnight losses on Wall Street as concern that Democratic victories could lead to tighter restrictions on data center construction resurfaced, dealers said.
AI and semiconductor-related shares led declines, while nearly all issues on the Prime Market were sold. A rebound of the benchmark West Texas Intermediate crude oil futures contract to above $90 per barrel also weighed on the market.
"Japanese stocks were sold across the board amid growing uncertainty over the economic and political outlook following the U.S. midterm elections," said Maki Sawada, strategist in the Investment Content Department of Nomura Securities Co.
