Japan’s Nikkei Stock Average Ends Lower, off 2-Week High Amid Election Outcome Worries (UPDATE 1)

Reuters

12:38 JST, July 18, 2025 (updated at 16:15 JST)

TOKYO, July 18 (Reuters) – Japan’s Nikkei share average slipped from a more than two-week high to end lower on Friday as investors weighed the outcome of the nation’s upper house election on the weekend.

The Nikkei .N225 fell 0.21% to 39,819.11. Earlier, it had risen to as high as 40,087.59, its highest level since July 1, underpinned by the strong performance of Wall Street.

The S&P 500 .SPX stock index and the Nasdaq Composite .IXIC both finished at record highs on Thursday, as investors embraced strong economic data and earnings reports that showed American consumers remained willing to spend. .N

For the week, the Nikkei rose 0.63% to snap two straight weeks of losses.

The broader Topix .TOPX slipped 0.19% to 2,834.48.

“Investors did not want to take a risk in buying stocks ahead of the national election on the weekend,” said Yugo Tsuboi, chief strategist at Daiwa Securities.

Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP) and its partner Komeito are expected to lose their majority in the upper house on Sunday.

Strategists now focus on whether Ishiba will remain in his position or step down after the election, as a gauge of the nation’s potential policy shift, which could lead to a cut in the national consumption tax.

Chip-related Advantest 6857.T fell 4.44%, the biggest drag on the Nikkei.

Disco6146.T was the largest percentage loser on the Nikkei, tanking 8.79%, as the chipmaking device supplier’s quarterly operating profit forecast missed market expectations.

Technology investor SoftBank Group 9984.T rose 5%, the biggest percentage gainer and the biggest support for the index.

Chipmaking equipment maker Tokyo Electron 8035.T erased early losses to end 0.29% higher.

Of more than 1,600 stocks on the Tokyo Stock Exchange’s prime section, 33% rose and 63% fell, and 2% traded flat.