TOKYO: Japan’s Nikkei share gauge slid for a third-straight session on Monday as concerns about an upcoming domestic election and unresolved trade talks with the United States weighed on investor sentiment.
The Nikkei 225 Index closed 0.3% lower, while the broader Topix gauge ended flat.
Japanese Prime Minister Shigeru Ishiba has said Japan would continue tariff negotiations with the US after US President Donald Trump last week raised tariffs on Japanese imports to 25% starting August 1.
However, these talks could face challenges, as prospects of Ishiba’s ruling coalition retaining its majority in the upper house after a vote on July 20 are dimming.
“If the ruling party were to lose its majority in the upper house, there is a risk that trade negotiations with the US will be delayed, and market concerns about fiscal expansion will increase,” said Nomura strategist Fumika Shimizu.
“I think there is a great possibility that the Japanese stock market will be affected by these developments.”
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