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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Tokyo, October 14 — Japan’s Nikkei 225 stock average closed down 2.58% at 46,847, tumbling amid renewed political instability following the collapse of the ruling coalition between the Liberal Democratic Party (LDP) and its longtime ally Komeito.
At one point in late trading, the benchmark index fell to 46,544, reflecting heavy selling pressure across major sectors.
Market Reaction
After reopening from a four-day holiday, Tokyo stocks opened sharply lower and remained in negative territory throughout the session.
Defense-related stocks, which had surged on expectations of Sanae Takaichi’s premiership, led the declines.
The downturn comes after Komeito’s sudden withdrawal from the LDP-led coalition on October 10, which threw Japan’s political landscape into uncertainty and raised questions over whether Takaichi, the newly elected LDP president, will indeed become the next prime minister.
Analysts noted that the “Takaichi trade” — a rally driven by expectations of continued monetary easing and defense spending — has now reversed sharply amid doubts about policy continuity.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
