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EQUITIES: Japanese Equities Lower Ahead Of Election

EQUITIES
EquitiesBulletMarketsFixed Income BulletsForeign Exchange Bullets

Japanese equities are lower today, ahead of this weekend's general election. The Topix Index & Nikkei 225 both dropped 1%, driven by concerns that the ruling Liberal Democratic Party and its coalition may lose their majority in the lower house. This uncertainty has led to a cautious mood among investors, despite support from a weaker yen.

  • An inconclusive election result could delay the usual post-election fiscal stimulus, affecting stock sentiment. However, it may also pressure the BOJ to maintain its easy monetary policy, which would help weaken the yen further and improve corporate earnings, particularly in the upcoming earnings season.
  • Rigaku Holdings,  saw its shares fall as much as 15% on its debut after conducting Japan’s second-largest IPO of the year. Concerns also weighed on Canon, whose shares dropped 5% after cutting its full-year profit guidance.
  • Investors are largely holding back until after the election, focusing on how the political outcome may impact fiscal and monetary policies moving forward.
  • All sectors are in the red today, with financials contributing most to the days losses, the TOPIX Banks Index is 1.42% lower.
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Japanese equities are lower today, ahead of this weekend's general election. The Topix Index & Nikkei 225 both dropped 1%, driven by concerns that the ruling Liberal Democratic Party and its coalition may lose their majority in the lower house. This uncertainty has led to a cautious mood among investors, despite support from a weaker yen.

  • An inconclusive election result could delay the usual post-election fiscal stimulus, affecting stock sentiment. However, it may also pressure the BOJ to maintain its easy monetary policy, which would help weaken the yen further and improve corporate earnings, particularly in the upcoming earnings season.
  • Rigaku Holdings,  saw its shares fall as much as 15% on its debut after conducting Japan’s second-largest IPO of the year. Concerns also weighed on Canon, whose shares dropped 5% after cutting its full-year profit guidance.
  • Investors are largely holding back until after the election, focusing on how the political outcome may impact fiscal and monetary policies moving forward.
  • All sectors are in the red today, with financials contributing most to the days losses, the TOPIX Banks Index is 1.42% lower.