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12:05 JST, October 24, 2024 (updated at 16:35 JST)
TOKYO (Reuters) – Japan’s Nikkei share average ended marginally higher on Thursday, just about ending a three-session losing run as investors fret about the country’s political stability.
The Nikkei ended up 0.1% at 38,143.29. However, that was after it opened down 0.79% and then swung to gains of as much as 0.6% in the session.
The volatility index ended flat at 27.8.
Local media have reported that the ruling Liberal Democratic Party (LDP) and its coalition partner Komeito may lose their majority in the Oct. 27 election, set up after Prime Minister Shigeru Ishiba dissolved the lower house of parliament on Oct. 9.
The Mainichi newspaper reported the ruling coalition may not reach the 200 seats required for an outright majority in the 465-seat chamber.
The market is worried about the stability of the government, said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
“The LDP would have a hard time passing bills if the coalition loses the majority. The government may become a lame duck,” Ikeda said.
Shuji Hosoi, senior strategist at Daiwa Securities, said, “The market has priced in the risks of a defeat for the ruling coalition and opposition parties may not boost as many seats as expected because the voting rate may be low.”
The broader Topix slipped 0.05% to 2,635.57, with Toyota Motor losing 0.69%.
Chip-testing equipment maker Advantest rose 2.31% to provide the biggest boost to the Nikkei. Chip-making equipment maker Tokyo Electron gained 1.12%.
Uniqlo-brand owner Fast Retailing fell 0.73% to weigh on the Nikkei the most. Technology investor SoftBank Group fell 1.97%.
Of the Nikkei’s 225 components, 73 stocks rose and 148 fell, with four flat. (Reporting by Junko Fujita; Editing by Subhranshu Sahu and Savio D’Souza)
