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6h ago

Nikkei Posts Biggest One-Day Drop Since April as Coalition Rift Rattles Markets

Local reports point to an October 20–21 parliamentary vote to choose Japan’s next prime minister, keeping investors on edge.

A man walks past a screen displaying Japan's Nikkei share average and exchange rate between Japanese yen and U.S. dollar outside a brokerage in Tokyo, Japan October 14, 2025. REUTERS/Issei Kato
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Overview

  • The Nikkei closed down 2.58% at 46,847.32 and the Topix fell 2.0%, the sharpest daily slide since April.
  • Uncertainty over the next premier after Komeito withdrew support for LDP leader Sanae Takaichi reversed the recent rally dubbed the “Takaichi trade.”
  • Exporters and large caps led declines, with Toyota down about 1% and SoftBank Group sliding 6% by the close.
  • Japan’s yield curve steepened as investors bought short-dated government bonds and sold longer maturities during the political flux.
  • Global sentiment was pressured by persistent U.S.-China trade frictions and shifting signals from President Donald Trump, even as some chip-related shares outperformed and precious metals extended gains.