TOKYO, Oct 14 (Reuters) - Japan's Nikkei share average
sank on Tuesday after reopening from a long weekend, pressured
by uncertainty surrounding the country's next premier and
persistent U.S.-China trade tensions.
The Nikkei ended the morning session down 1.2% at
47,520.57, with just 31 of its 225 components rising, 192
declining and two trading flat.
The broader Topix slid 1.4% to 3,153.50.
Japanese investors returning from a national holiday on
Monday faced a complex global backdrop, including a stronger yen
and Wall Street sell-off on Friday. While both saw partial
reversals, market sentiment remained fragile as shifting signals
from U.S. President Donald Trump continued to unsettle traders.
On balance, weaker U.S. stocks and a stronger yen since the
start of Japan's extended weekend weighed on the market, said
Maki Sawada, an equity strategist at Nomura Securities.
In addition, the initial euphoria from fiscal dove Sanae
Takaichi's election as leader of the Liberal Democratic Party at
the start of the month has faded after coalition partner Komeito
pulled support. This opened a small possibility of an opposition
party leader being elected prime minister by parliament later
this month. Local media say October 20 or 21 are likely dates
for the vote.
"The decline of the 'Takaichi trade' is one reason" for
weakness in Japanese stocks on Tuesday, Sawada said. "Political
uncertainty is weighing."
Exporters, whose overseas revenue is crimped by a stronger
currency, dropped on Tuesday, with Toyota ( TM ) down 1.1%.
Tyremakers also experienced outsized declines, making the rubber
sector the worst performer among the Tokyo Stock
Exchange's 33 industry groups.
SoftBank Group slumped 3.8%, extending its pullback
from a record high on Thursday as the heavyweight startup
investor continued to retreat.
Still, many chip-sector shares advanced, tracking upbeat
performances among Wall Street peers overnight. Lasertec ( LSRCF )
rose 3% and Sumco ( SUMCF ) gained 2.5%.
"Expectations for growth in artificial intelligence remain
in place," said Nomura's Sawada.
Elsewhere, Muji owner Ryohin Keikaku ( RYKKF ) surged 12.3%
following its earnings announcement after the closing bell on
Friday, making it the Nikkei's top performing stock.