Nikkei Plunges 2.6%, Japan's Political Uncertainty Pressures Markets
The Nikkei 225 index closed sharply lower by 2.6% to 46,847.32 on Tuesday, posting its biggest daily decline since April 11. The pressure came after the Komeito party withdrew from Japan's governing coalition, increasing political uncertainty and raising concerns of a short-term correction in the stock market. This situation is also considered to complicate the path of Sanae Takaichi, the new president of the Liberal Democratic Party (LDP), to become the next prime minister.
Major stocks also fell, with MonotaRO plunging 10%, Furukawa Electric dropping 7.5%, and Chugai Pharmaceutical plunging 6.4%. Meanwhile, the USD/JPY exchange rate was trading at 151.82, slightly higher than 152.29 at the close of trading on Monday in New York. Japanese markets had just resumed operations after a national holiday the previous day.
Source: Newsmaker.id