Japanese shares reverse early gains ahead of new government formation

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TOKYO, Oct 4 (Businesshala) – Japanese stocks reversed early gains on Monday as caution loomed ahead of the formation of a new government and lingering concerns over the China Evergrande debt crisis stemmed from a strong Wall Street finish last week. surpassed.

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Nikkei shares fell an average of 1.14% to 28,441.89 as of 0206 GMT, led by declines in technology and shipping stocks. Earlier in the session it had risen to 1.16% after losses for five consecutive sessions. Broader Topics fell 0.72% to 1,972.09.

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“The market started falling as soon as it reached its all-time high for the session. “This is a normal move when selling pressure is strong,” said Tomoichiro Kubota, a senior market analyst at Matsui Securities.

“With signs of Chinese economic slowdown and US budget issues, the market is now facing triple pain. At the same time, we cannot expect the new Japanese cabinet to have the same monetary policies as we did under Abenomics.

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The Evergrande debt crisis continues to cast doubt on China’s economic growth, while the fate of the Biden administration’s key spending bills is still unclear.

Market participants said Japan’s incoming Prime Minister Fumio Kishida is set to formally take office on Monday and has so far failed to impress investors.

Chip-making equipment maker Tokyo Electron was the most dragged down by the Nikkei, down 3.21%. Technology start-up investor SoftBank Group fell 2.52% and robot maker Fanuc fell 3.91%.

Shippers fell 8.24%, Kawasaki Kisen lost 8.59%.

Department store operators rose after Japan lifted its COVID-19 emergency measures last week, with Easton Mitsukoshi Holdings climbing 4.55%, J. Front retailing rose 4.39% and Takashimaya rose 3.86%.

Airlines jumped 2.49%. (Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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