# Nikkei falls 3.1% on US midterm result as AI stocks slide; bitcoin dips, then nears $78,000

Source: Searchable (https://searchable.pk/news/markets/nikkei-falls-31percent-as-us-midterm-results-hit-ai-stocks-bitcoin-dips-to)
Type: News article
Author: Searchable Editorial
Published: 4 Nov 2026
Updated: 4 Nov 2026
Retrieved: 4 Nov 2026

> SoftBank, Kioxia and Advantest led the fall in Tokyo on fears of tighter US rules, while bitcoin made a V-shaped recovery once the Democratic sweep was clear. The KSE-100 kept rising.

**Japan's Nikkei 225 fell 3.1% to 61,127.9 on Wednesday morning** as Democratic gains in the US midterm elections hit AI and chip stocks across Asia, [Business Recorder reported](https://www.brecorder.com/news/40447363/japans-nikkei-drops-3-as-democratic-gains-in-us-midterms-hit-ai-stocks) from Reuters, while **bitcoin dropped to about $75,700 and then bounced back near $78,000** once it was clear Democrats had won both houses of Congress, [CoinDesk reported](https://www.coindesk.com/markets/2026/11/04/bitcoin-knocks-on-usd78-000-in-v-shaped-comeback-as-midterm-uncertainty-fades). The Karachi market went the other way: the **KSE-100 was at 170,550.55** in our noon reading, up from 168,018.86 on Tuesday ([live KSE-100](/data/kse-100)).

## Tokyo: AI names hit hardest

By 6:50am PKT (0150 GMT) the broader Topix was down 1.85% at 3,857.97, and 130 of the Nikkei's 225 stocks were lower. The heaviest falls were in companies tied to AI infrastructure and data centres, on worries that a Democratic Congress will bring tighter rules and slower spending:

| Stock | Move |
|---|---|
| Kioxia | -10% |
| Furukawa Electric | -9% |
| Fujikura | -8.2% |
| SoftBank Group | about -7% |
| Advantest | -6.4% |
| Tokyo Electron | -5% |

"Democrats are winning seats in some key states," said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. More than $1.48 billion had been wagered on the midterms on prediction markets.

## Bitcoin: a V-shaped night

Bitcoin slid below $76,000 early on Wednesday as projections of a Democratic sweep came in, which traders read as a setback for the pro-crypto policies of the Trump administration. It recovered as the result firmed up: Nasdaq futures, down more than 2% at one point, pared the loss to 0.3%, CoinDesk said. Traders bought about $420 million of call options against $105 million sold, out of $660 million in election-day options blocks.

"A clear outcome resolves political uncertainty," said Dick Lo of TDX Strategies. Markus Thielen of 10x Research said bitcoin was oversold "and should rally back towards the 82,000 level". Not everyone is convinced: US spot bitcoin ETFs lost $515 million to outflows in October and about the same again in the first two trading days of November.

Our [bitcoin price page](/data/btc-usd) had it at **$78,029.88** at 12:40pm PKT, and [ether](/data/eth-usd) at $2,298.71.

## What it means for you in Pakistan

- **Shares:** the PSX is not trading the US result the way Tokyo is. Karachi has been rising on its own story (a record 681,965 investors in October). If you hold shares through a broker, nothing in Wednesday's Asian sell-off changes your position directly.
- **Crypto:** the overnight swing of about $2,300 is roughly **Rs 6.4 lakh on one bitcoin** at today's interbank rate of Rs 276.71 to the dollar ([dollar rate](/data/usd-pkr)). If you hold coins on a foreign app, the [currency converter](/tools/finance/currency-converter) turns the dollar value into rupees.
- **Gold:** [24-karat gold](/data/gold-24k-tola) was Rs 417,308 a tola in Wednesday's reading, up from Rs 408,042, as investors moved to safer assets.

For every result from the election itself, see our [US midterm results page](/news/us/us-midterm-elections-2026-results-pakistan-time).

## Frequently asked questions

**Why did the Nikkei fall on 4 November 2026?**

Democratic gains in the US midterms raised fears of tighter rules and slower spending on AI infrastructure, pulling down chip and AI stocks such as SoftBank, Kioxia and Advantest.

## Sources

- Japan's Nikkei drops 3% as Democratic gains in US midterms hit AI stocks (Business Recorder (Reuters)): https://www.brecorder.com/news/40447363/japans-nikkei-drops-3-as-democratic-gains-in-us-midterms-hit-ai-stocks
- Bitcoin knocks on $78,000 in V-shaped comeback as midterm uncertainty fades (CoinDesk): https://www.coindesk.com/markets/2026/11/04/bitcoin-knocks-on-usd78-000-in-v-shaped-comeback-as-midterm-uncertainty-fades
- Bitcoin briefly sinks to $75,700 as bets on a Democratic sweep rattle markets (CoinDesk): https://www.coindesk.com/markets/2026/11/04/bitcoin-briefly-sinks-to-usd75-700-as-bets-on-a-democratic-sweep-rattle-markets

How to cite: "Nikkei falls 3.1% on US midterm result as AI stocks slide; bitcoin dips, then nears $78,000", Searchable, 4 Nov 2026, https://searchable.pk/news/markets/nikkei-falls-31percent-as-us-midterm-results-hit-ai-stocks-bitcoin-dips-to