TOKYO: Japan’s Nikkei share average fell in choppy trade on Monday, despite gains in technology stocks, as caution ahead of a domestic election and corporate earnings weighed on sentiment.
The Nikkei closed 0.07% lower at 38,954.60, while the broader Topix was down 0.34% at 2,679.91.
Japan’s tech shares followed their US peers higher to keep the Nikkei in the green for much of the day, after an earnings-driven jump in Netflix shares and broader gains across tech stocks on Friday.
The Dow Jones Industrial Average and S&P 500 chalked up record closing highs last week, with the Nasdaq also in positive territory due to the tech bump.
Japanese chip-testing equipment maker Advantest gained 2.7% to offer the biggest lift, followed by chip-making equipment giant Tokyo Electron added 0.9%.
However, the Nikkei struggled for momentum outside of tech, briefly slipping to its lowest since Oct. 4 at 38,775.59 as investors eyed more company earnings announcements later this week.
Japan will vote in a general election on Oct. 27 and it remains to be seen whether the ruling Liberal Democratic Party (LDP) will succeed in winning the 233 seats needed for a lower-house majority.
“It seems like investors are refraining from active trading in anticipation of these events”, creating a heavy upward resistance, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.
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