Japan's Nikkei share average oscillated between gains and losses on Friday, weighed down by a selloff in technology stocks, as investors stayed cautious ahead of Sunday's general election. The benchmark Nikkei 225 index edged 0.1% higher to 53,881.69, positioning for a 1% weekly gain. The broader Topix rose 0.5% to 3,671.61.
On the Tokyo Stock Exchange, investors watched the Nikkei average closely on Friday as pressure from the technology sector dragged on the broader market. Chip-testing equipment maker Advantest dropped 3.1%, serving as the largest drag on the Nikkei and continuing its decline from Thursday. Meanwhile, SoftBank Group, a key investor in artificial intelligence, recovered slightly with a 0.15% gain following a sharp fall in the prior session.
With Sunday's general election approaching, expectations of a landslide victory for the ruling coalition under fiscal dove Prime Minister Sanae Takaichi have kept investors on edge. Maki Sawada, a strategist at Nomura Securities, noted, 'Taking a cue from last night’s U.S. market, some high-priced semiconductor and AI-related names are down, but their drops aren’t as large as (Thursday’s).' She added, 'Since semiconductors have stood out for their declines over the past few days, if dip-buying were to come into these high-priced semiconductor stocks, the Nikkei’s losses could narrow from here.'
Food additive producer Ajinomoto surged 10%, while Mitsubishi Motors jumped 8.5%. The Nikkei saw 129 advancers against 93 decliners. Nikon, the camera maker, plunged 8.5% to become the worst performer after downgrading its fiscal-year forecast to a net loss from profit. Soy sauce maker Kikkoman fell 8.2%, and precision parts maker Minebea Mitsumi slipped 6.5%. Shares in Japanese pharmaceutical firms also weakened following the launch of U.S. President Donald Trump’s website offering discounted prescription medicines.
Overall, these movements position the Nikkei for a 1% weekly gain, though the election outcome could sway market direction further.
