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Japan's Nikkei ends lower on profit-booking; Komeito exit stirs political woes
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Japan's Nikkei ends lower on profit-booking; Komeito exit stirs political woes
Oct 10, 2025 12:48 AM

(Updates with closing prices)

By Junko Fujita

TOKYO, Oct 10 (Reuters) - Japan's Nikkei fell on Friday

on profit-booking ahead of a long weekend, with reports after

the close that the Komeito party would leave the ruling

coalition, renewing political uncertainty.

The Nikkei fell 1.01% to 48,088.8, but still notched

its best week in more than a year, rising 5%, helped by a sharp

jump in Uniqlo brand owner Fast Retailing ( FRCOF ).

The broader Topix slipped 1.85% to 3,197,59.

After the market closed, Japan's local media reported that

the Komeito party will leave the ruling coalition with the LDP,

casting uncertainty over the LDP's ability to govern as Sanae

Takaichi takes over the party.

The Nikkei jumped this week, after Takaichi won the party's

leadership election and placed on course to become the next

prime minister, boosting expectations of renewed fiscal stimulus

and loose monetary policy.

"It was natural that investors wanted to book profits after

the sharp rally," Tokai Tokyo Intelligence Laboratory market

analyst Shuutarou Yasuda said.

"But worries that whether Takaichi can successfully secure

coalition partners are growing. The stocks rose on expectations

of Takaichi's fiscal spending, but if the Liberal Democratic

Party (LDP) can not form a solid coalition, Takaichi's plans may

not go ahead."

Technology investor SoftBank Group lost 3.14%.

Chip-related shares fell, with Advantest ( ADTTF ) and Tokyo

Electron ( TOELF ) slipping 0.94% and 1.41%, respectively.

The Nikkei rose by around 6,000 points from the low hit on

September 3 till Thursday. Of this, 70% of the gains came from

the rally in these three firms, said Kazuaki Shimada, chief

strategist at IwaiCosmo Securities.

Fast Retailing ( FRCOF ) jumped 6.65% to become the biggest support

for the Nikkei, after it posted a record high annual profit.

All but one of the Tokyo Stock Exchange's 33 industry

sub-indexes fell, with the brokerage index losing 5%

to become the worst performer.

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