Nikkei 225 Extended Weekly Losses Ahead of National Election, Tokyo Inflation Drops to 6-Month Low

Akira Ito
25 Oct, 2024
Tokyo

Stock market indexes closed down and extended weekly losses as investors stayed on the sidelines ahead of the national election this weekend. 

The Nikkei 225 stock average declined 0.6% and the broader Topix index fell 0.7%, and both indexes extended weekly losses to 2.4%. 

The yen traded at 151.37 against the U.S. dollar and hovered near its 3-month low ahead of the Sunday national election. 

The ruling coalition government is likely to suffer losses, which could lead to post-election chaos as leading parties struggle to win sufficient seats to lead the nation amid widespread voter apathy. 

The Liberal Democratic Party is struggling to win 199 seats, and its coalition partner, the New Komeito Party, is expected to win less than 25 seats. 

The main opposition party, the Constitutional Democratic Party, is expected to increase its seat count to 150 from the current tally of 99. 

The LDP may need help from other parties or independent candidates to form a coalition of at least 233 elected members, the needed majority in the 465-member lower house of the parliament. 

On the economic front, Tokyo area core inflation in October dropped below 2% for the first time in five months. 

Consumer price inflation, excluding food prices, in the capital slowed to 1.8%, and the price increase decelerated for the second consecutive month, the Ministry of Internal Affairs and Communication reported Friday. 

Overall inflation also rose to 1.8% from a year ago in October, and a softer increase in energy prices contributed to the slowdown in price increases. 

Service prices increased 0.6% from a year ago in October, including an increase in postal fares in the month. 

Japan Post increased its ordinary mail charges by 30%, the first increase in three decades. 

 

Japan Stock Movers 

The Nikkei 225 Stock Average declined 0.6% to 37,913.92, and the broader Topix index eased 0.7% to 2,618.32. 

Tokyo Metro declined 5.5% to ¥1,609.0 and extended two-day losses to 7% after the subway system operator listed its stock on the Tokyo Stock Exchange at 1,200 yen, or $8.0. 

Mitsubishi UFJ Financial declined 1% to ¥1,548.50, Sumitomo Mitsui Financial dropped 0.4% to ¥3,103.0, and Mizuho Financial eased 0.5% to ¥3,086.0. 

Seven & I Holdings decreased 0.1% to ¥2,264.0, Fast Retailing declined 0.7% to ¥49,850.0, and Isetan Mitsukoshi fell 2.7% to ¥2,208.0. 

Konica Minolta soared 7.2% to ¥602.10, and the stock extended its weekly rise to 25%. 

IHI Corp. advanced 0.2% to ¥7,767.0, Canon Inc. declined 1.6% to ¥4,959.0, Nidec Corp. gained 4.3% to ¥3,123.0, and Panasonic Holdings decreased 1.2% to ¥1,227.50. 

Toyota Motor decreased 0.1% to ¥2,600.0, Honda Motor fell 1% to ¥1,520.50, and Nissan Motor fell 0.3% to ¥395.90. 

In the year-to-date's trading, Nissan Motor fell 29%, Toyota Motor eased 1.3%, and Honda Motor gained 1.6%.