Chipmakers and shippers push Japanese stocks lower
TOKYO, Sept.28 (Reuters) – Japanese stocks ended lower on Tuesday, as heavy losses by chipmakers and shippers overshadowed investors’ hopes for sustained economic growth under new political leadership as they approached ruling party elections.
The Nikkei stock average fell 0.19% to close at 30,183.96, after falling 0.78% earlier in the session. The wider Topix edged down 0.29% to 2,081.77.
“The losses have eased because investors realized that Japan is currently a preferred market in the world,” said Shigetoshi Kamada, managing director of the research department at Tachibana Securities.
“China has greater risks due to Evergrande’s debt problems, and the US economy may have peaked. The prospects for German politics are unclear.
The Nikkei has gained more than 7% so far this month as the Liberal Democratic Party’s leadership elections approach, which will effectively choose the new prime minister.
Regardless of who becomes prime minister, investors are now confident that Japan’s political base will be stable under the current coalition, Kamada added.
Japan’s economic growth could accelerate as the country prepares to lift the coronavirus state of emergency in all regions on Thursday amid a drop in COVID-19 infections.
Advantest chip heavyweights lost 3.57%, Tokyo Electron slipped 1.05% and Shin-Etsu Chemical lost 1.47%.
Shippers led the decline among the 33 Tokyo Stock Exchange sub-indices with an 8.61% drop.
Kawasaki Kisen Kaisha fell 14.45% making it the biggest percentage loser on the Nikkei, followed by Nippon Yusen losing 8.18% and Mitsui OSK Lines down 7.04%.
Oil explorers climbed the most with Inpex gaining 4.2% and Japan Petroleum Exploration up 1.33%. (Reporting by Junko Fujita; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)