And retreat Nikkei indicator 1.39 percent to 38,411.96 points at close, and also decreased Topix indicator The broader range rose 1.06 percent to 2,651.47 points.
The Dow Jones and Standard & Poor’s 500 indices closed lower on Monday, retreating from the record high closing levels they recorded on Friday and gains for six consecutive weeks, with Treasury bond yields rising and investors wary of high valuations for large corporate profits.
Japanese local media said that the Liberal Democratic Party and its coalition partner, the Komeito Party, may lose their majority in the House of Representatives in the elections held on October 27.
A report last week stated that Democratic Party Al-Hur may not win the 233 seats it needs to achieve a clear majority in the 465-seat council.
Prime Minister Shigeru Ishiba dissolved the House of Representatives on October 9, making way for early elections.
“The market does not like turmoil or uncertainty. The LDP may have to look for another party to maintain the majority in the House of Representatives, which means it may have to adjust some of its policies,” said Shigetoshi Kamada, general manager of the research department at Tachibana Securities.
As for individual stocks, Fast Retailing, owner of the Uniqlo clothing brand, fell 3.18 percent, being the largest contributor to the Nikkei’s decline. Shares of Tokyo Electron, a maker of chip manufacturing equipment, fell 3.08 percent. Shares of Advantest, a manufacturer of chip testing equipment, fell 2.7 percent.
