The Nikkei 225 Index decreased by 0.6%, closing at 37,914, while the broader Topix Index fell 0.65% to 2,615.8 on Friday.
Nikkei and Topix slide ahead of Japan’s election
This marks the second consecutive week of declines for both indexes as investors prepared for Japan’s general election this weekend, which could see the coalition government lose its parliamentary majority. Markets were also alert for an influx of expected corporate earnings reports in the coming weeks. Additionally, data revealed that Tokyo’s core inflation, a key indicator of nationwide price trends, slowed to a six-month low of 1.8% in October, falling short of the Bank of Japan’s 2% target.
Major index constituents post significant losses amid market decline
Significant losses were recorded among major index constituents, including Advantest (-2.9%), Canon Inc (-1.6%), and Mitsubishi UFJ (-1.1%). Tokyo Metro, a recent IPO, dropped 5.5% after a 2.1% decline in the previous session. Over the week, the Nikkei and Topix indexes fell by 2.74% and 2.63%, respectively.
