Overview

• The Nikkei 225 dropped more than 1,400 yen at one point and fell below 47,000 for the first time in about a week.
• By 1:00 p.m. local time, the index was down 845.49 to 47,243.31, with broad selling across sectors.
• The reversal followed Komeito’s departure from the ruling bloc, which clouded prospects for the next government and undercut positioning tied to a potential Sanae Takaichi premiership.
• TOPIX declined 55.71 points to 3,141.88 in early afternoon trading, reflecting the risk-off tone across the market.
• Tokyo’s slide diverged from a strong New York close the previous day, when the Dow rose over $500 on a perceived softening of U.S. policy toward China, as investors in Japan adopted a wait-and-see stance.