In the cautious trading ahead of the upcoming release of US employment data and the approaching US presidential election next week, the Nikkei index plummeted more than 1000 points on Friday, November 1st.

At the close, the Nikkei average index of 225 stocks fell by 1027.58 points, a decrease of 2.63%, to 38,053.67 points. The broader Topix index fell by 51.25 points, a decline of 1.90%, closing at 2,644.26 points. #Japanese Market#

In Tokyo's primary market, sectors such as non-ferrous metals, transportation equipment, and electrical appliances led the decline.

Tokyo stock market fell for the second consecutive day, with almost all sectors experiencing declines, except for one sector which rose.

Technology stocks led the decline, following the weak performance on Wall Street. In the US, the tech-heavy Nasdaq index fell by 2.76%, bringing downward pressure on semiconductor stocks listed in Tokyo.

Some tech giants such as Microsoft's profit forecast dimmed, triggering concerns in the market about the negative impact of potential large-scale investments in artificial intelligence on future performance.

The US dollar/Japanese yen rose to a high of 152 in Tokyo, with traders noting that the USD/JPY was bought back after a rapid drop to above 151. Earlier, remarks by Bank of Japan Governor Haruhiko Kuroda hinted at a closer move towards further rate hikes.

At a news conference on Thursday afternoon, Haruhiko Kuroda emphasized the possibility of conditional rate hikes. He stated that if Japan's economic and price outlook remains in line with the Bank of Japan's forecasts, the central bank will continue to gradually raise policy rates and adjust the level of monetary easing as needed.

Auto manufacturers and other export stocks continue to be under pressure, with analysts saying that Zhi Tian's comments have heightened expectations for the Bank of Japan to raise interest rates in December and the long-term strength of the yen.

In the afternoon, investors locked in profits before a three-day holiday, further exacerbating the market's cautious sentiment, especially as the U.S. will release October potentially providing clues about the timing of the next Fed rate cut.non-farm payroll dataIt could provide clues about the timing of the next Fed rate cut.

"Investors are concerned that the U.S. market may further decline. Although the results of Japan's presidential election won't be available until at least Wednesday, the volatility risk is affecting market sentiment," said Kazuo Kamitani, a strategist at Nomura Securities' Investment Content Department.

In addition, the upcoming presidential election has intensified investors' cautious sentiment, especially as the Tokyo stock market will be closed for a three-day holiday.