Japanese Stocks Drop Ahead of General Election
The Nikkei 225 Index fell 0.6% to below 3,200 while the broader Topix Index lost 0.2% to 2,646 on Wednesday, reversing gains from earlier in the session as caution dominated sentiment ahead of Japan's general election this weekend. Polls suggested that the ruling Liberal Democratic Party could lose its majority with coalition partner Komeito, raising concerns about political instability.
Rising global bond yields also continued to pressure equity markets, with the benchmark 10-year US Treasury yield topping 4.2% amid solid economic data and deficit worries in the US. In corporate news, shares of Japanese subway operator Tokyo Metro surged 40% on its debut on Wednesday after raising 348.6 billion yen in its IPO, the largest in Japan in six years. Technology stocks led the decline, with notable losses from Disco Corp (-2.6%), Advantest (-0.7%) and Tokyo Electron (-0.5%).
Source: Trading Economics