TOKYO - The Nikkei stock index ended down over 3,600 points on Friday, marking the third largest-ever point drop as artificial intelligence-linked stocks took a hard hit on renewed concerns over regulations following the U.S. midterm elections.
The 225-issue Nikkei Stock Average ended down 3,643.13 points, or 5.96 percent, from Thursday at 57,434.77 after losing more than 4,300 points at one point.
The drop on the closing basis exceeded the previous third biggest fall of 3,318.34 points set on Oct. 15 this year.
The broader Topix index finished 232.40 points, or 5.90 percent, lower at 3,707.99.
On the top-tier Prime Market, the main decliners were food, oil and coal product, and real estate issues.
The U.S. dollar mostly traded in the upper 157 yen range in Tokyo with both the dollar and the yen attracting safe-haven buying as the major indexes in the countries plunged.
At 5 p.m., the dollar fetched 157.94-96 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 $1.1176-1178 and 176.52-56 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.
The yield on the benchmark 10-year Japanese government bond ended down 0.120 percentage point from Thursday's close at 2.635 percent, on safe-haven buying amid a global stock sell-off.
The benchmark Nikkei index ended at its lowest level since mid-April, after briefly falling more than 7 percent, as AI and semiconductor-related shares led declines, while nearly all issues on the Prime Market came under selling pressure.
Stocks tracked overnight losses on Wall Street as concern that Democratic victories could lead to tighter restrictions on data center construction resurfaced, dealers said.
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.
Despite recent buying shifting toward non-technology sectors following the losses after elections, funds fled to the currency and bond markets during the day's plunge, dealers said.
"Concerns about an economic slowdown emerged as a new factor today, leading to broader selling," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Japan Tobacco plunged 19.3 percent to 6,269 yen, ending at its daily limit low, after Russian President Vladimir Putin ordered the company's Russian assets to be placed under the temporary management of a Russian firm.
