Japan’s Nikkei 225 index rose 0.2%, breaking through the 62,300 level during Thursday’s trading session (November 5, 2026), recovering some of the losses sustained in the previous session. This gain followed a rally on Wall Street, spurred by U.S. midterm election results that saw the Democratic Party secure a victory. Investor sentiment improved alongside a sharp decline in global oil prices, driven by growing hopes for a resolution to conflicts in the Middle East. These developments provided a boost to the Japanese stock market, particularly for sectors sensitive to energy costs.
The drop in oil prices served as a key driver of investor optimism. The Democratic Party’s success in the U.S. Congress has raised expectations that President Donald Trump’s administration will face increased pressure to bring an end to the conflict with Iran. The prospect of easing geopolitical tensions led to a sharp correction in global oil prices, which could potentially lower production and transportation costs. For Japan—a nation heavily reliant on energy imports—lower oil prices could help reduce corporate operating expenses while easing domestic inflationary pressure.
The gains in the Japanese stock market were led by the retail and automotive sectors, both of which benefited from improved global sentiment. Shares of Fast Retailing surged 9.5%, Nintendo climbed 5.3%, and Toyota Motor rose 6.9%. The banking sector also performed well, with Mitsubishi UFJ up 3.2% and Sumitomo Mitsui rising 1.7%. The strength of these major stocks helped support the Nikkei index, even as other sectors showed more mixed performance.
However, the rally in the Japanese stock market was tempered by pressure on technology and artificial intelligence (AI) firms. With the Democratic Party now in control of Congress, investors are beginning to weigh the possibility of regulatory shifts and changes to policies regarding data center development in the United States. These concerns triggered selling pressure on a number of Japanese technology stocks, including Kioxia Holdings, which plunged 7.3%; Advantest, which fell 8.5%; and SoftBank Group, which dropped 6.2%. This situation indicates that growing uncertainty regarding the outlook for AI investments remains a challenge for the global technology sector.