Nikkei Average Dives over 1,400 Points in Afternoon

Tokyo, Oct. 14 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average briefly dropped over 1,400 points Tuesday afternoon, as investor sentiment was weighed down by growing uncertainty over Japanese politics. At 1:32 p.m., the Nikkei index was down 1,454.38 points, or 3.02 pct, from Friday at 46,634.42. The Tokyo market was closed Monday for a national holiday. After Friday’s market closing, Komeito announced its decision to dissolve its coalition with the ruling Liberal Democratic Party. The Nikkei had surged through last week on expectations that new LDP leader Sanae Takaichi would implement an aggressive fiscal policy if she is elected the country’s prime minister. Komeito’s departure from the coalition fueled uncertainty over whether Takaichi can become prime minister. The U.S. stock market plunged Friday as President Donald Trump said he was considering an additional tariff on imports from China, in response to Beijing’s announcement of tighter export controls on rare earths. The Nikkei pared losses somewhat in the morning thanks to the strength of artificial intelligence-related issues, which attracted buying on expectations for growing AI demand. But stocks came under further selling pressure in the afternoon, with the index falling below 47,000 on an intraday basis for the first time since Oct. 6. In Tokyo currency trading, the dollar stood at 152.14-15 yen at 1 p.m., down from 152.84-85 yen at 5 p.m. Friday. Investors bought the yen, considered a safe haven currency, in light of Japanese political uncertainty and worries over trade frictions between the United States and China. END [Copyright The Jiji Press, Ltd.]