TOKYO: Japan’s Nikkei share average fell for a fifth straight session on Wednesday, pressured by global trade frictions and political uncertainties at home, while the nation’s bonds staged a rally after a plunge in the previous session.
The Nikkei slid 0.5 percent to 52,738.17, poised for its longest losing streak in a year. The broader Topix was down 1.1 percent.
The Japanese markets are in a fragile state this week, with Prime Minister Sanae Takaichi set to dissolve parliament on Friday to trigger a snap election, while the central bank meets on policy the same day.
Yields on Japanese government bonds (JGBs) surged to record highs on Tuesday after Takaichi pledged to eliminate sales taxes on groceries, fuelling concerns about the country’s already precarious finances.
The rout in JGBs was reminiscent of the 2022 collapse in British gilts and a warning for confidence in Japan’s balance sheet. A decline in yields on most Japanese tenors on Wednesday helped defuse some of those worries.