Overview

• The Nikkei 225 closed down 1,241.48 at 46,847.32 on October 14 after falling more than 1,500 points intraday.
• Selling intensified after Komeito quit the long-standing coalition with the Liberal Democratic Party, injecting political uncertainty.
• Fresh Chinese sanctions on U.S. companies announced on October 14 revived U.S.–China tensions and accelerated the afternoon sell-off.
• Gains from the so‑called Takaichi trade quickly reversed as investors reassessed bets on large fiscal measures and looser monetary policy.
• Analysts described the prior advance as overextended and noted a broad turn to risk aversion across sectors.