Japan's Nikkei slips on caution ahead of election
23/10/2024 07:43
(Updates at 0600 GMT)
TOKYO, Oct 23 (Reuters) - Japan's Nikkei share average
fell for a third straight session on Wednesday as caution ahead
of the country's upcoming lower house election results
overshadowed any boost from a weaker yen.
The Nikkei .N225 closed 0.8% lower at 38,104.86, while the
broader Topix .TOPX slid 0.55% to 2,636.96.
The losses came even as the yen JPY=EBS weakened past the
152 per dollar level on Wednesday for the first time in nearly
three months.
A softer yen tends to help exporter shares as it increases
the value of overseas profits in yen terms when firms repatriate
them to Japan.
"With a weaker yen, investors could become more positive
about domestic stocks," said Seiichi Suzuki, chief equity market
analyst at the Tokai Tokyo Intelligence Laboratory.
"But they stayed away from making active bets as they
awaited the outcome of the general election. That capped today's
gains and this trend will continue this week."
Prime Minister Shigeru Ishiba dissolved the lower house of
parliament on Oct. 9, setting up the snap election on Oct. 27.
Local media reported that the ruling Liberal Democratic
Party (LDP) and its coalition partner Komeito may lose their
majority in the election.
Japanese stocks began the day marginally higher, but lost
steam over the course of the trading day to reverse their gains.
A bright spot was
Tokyo Metro
9023.T , whose shares shot up 44% in their market debut on
Wednesday, closing at 1,739 yen ($11.42). Japan's largest
initial public offering in six years netted it $2.3 billion with
promises of generous dividends.
Within the Topix .TOPX , Toyota Motor 7203.T rose roughly
3% to become the top gainer. Honda Motor 7267.T closed up
2.2%.
Automakers ITEQP.T added 2.13% to become the best
performer among the Tokyo Stock Exchange's 33 industry
sub-indexes.
Among the Nikkei heavyweights, staffing agency Recruit
Holdings 6098.T fell 4.93% and Uniqlo-owner Fast Retailing
9983.T slipped 1.67%.
Home interior goods retailer Nitori Holdings 9843.T , whose
share prices are affected by a weaker yen as it imports most
materials for its products from abroad, fell 2.81%.
($1 = 152.2800 yen)
(Reporting by Junko Fujita; Editing by Sumana Nandy and Janane
Venkatraman)
((junko.fujita@thomsonreuters.com;))