Japan's Election Outcome May Surprise Investors, Tokyo Metro Soars 45%

Akira Ito
23 Oct, 2024
Tokyo

Stocks in Tokyo declined for the third day in a row as investors turned cautious ahead of general elections this Sunday. 

The Nikkei 225 stock average decreased 0.8%, the broader Topix index declined 0.5%, and the yen traded at 152.45 against the U.S. dollar. 

Investors stayed on the sidelines after several polls suggested that the ruling party LDP and its coalition partner Komeito may not return to power amid widespread voter dissatisfaction. 

Since 2013, the Liberal Democratic Party has been in office, but the party has been engulfed in a corruption scandal, and voters are also unhappy about the rising cost of living amid stagnant wages. 

The LDP is likely to lose as many as 40 seats in the upcoming election of the current 247 held by the ruling party. 

Komeito, the member of the ruling coalition, is also expected to lose as many as 9 seats from the current 32 seats held in the lower house of the parliament. 

LDP needs at least 233 seats in the 465-seat Diet, the lower house of the parliament, and the ruling party is likely to lose several seats outside of major cities. 

On the other hand, the Constitutional Democratic Party of Japan is likely to increase its tally of seats to as many as 130 from the current 98, and Nippon Ishi is expected to struggle to hold on to its 44 seats. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average decreased 0.8% to 38,088.07, and the broader Topix index fell 0.5% to 2,638.25. 

Tokyo Metro Co. Ltd. soared more than 45% to 1739 yen on the first day of trading after the railway company priced its initial public offering at 1,200 yen per share. 

The company sold 290.5 million shares and raised 348.6 billion yen, or $2.3 billion, in the largest public offering in six years. 

The company priced its offering on the top end of its filing range between 1,100 yen and 1,200 yen. 

Tokyo Electron declined 1% to ¥22,770.0, Advantest fell 1.1% to ¥7,871.0, Disco Corp. dropped 4.2% to ¥37,680.0, and Lasetec decreased 1.5% to ¥21,025.0. 

Sumitomo Mitsui Financial declined 1.1% to ¥3,124.0, Mitsubishi UFJ decreased 1.5% to ¥1,567.0, and Mizuho Financial fell 1.4% to ¥3,098.0. 

Seven &I Holding dropped 0.8% to ¥2,201.50, Fast Retailing declined 1.7% to ¥50,570.0, and Isetan Mitsukoshi advanced 0.7% to ¥2,227.50. 

Konica Minolta soared 11.5% to ¥533.30, Tokyo Tatemono surged 6.1% to ¥2,463.0, and Asahi Group advanced 3.4% to ¥1,798.0.