Japan Shares Closed Lower on Caution About US Stimulus

Japanese stocks closed lower on Tuesday, tracking down on Wall Street’s losses overnight, while investors are cautiously watching whether US projectors will be able to strike a deal on a stimulus package as the deadline approaches.

The Nikkei index fell 0.44% to 2,3567.04 points at the close, while the broader Topix index lost 0.75% to 1625.74 points.

Traders said that stock losses continued in the evening session as investors obeyed profit-taking operations, refraining from forming positions before important events, including the US elections and the results of companies at home and abroad.

Overnight, the main indexes on Wall Street closed lower as US lawmakers began to find it difficult to reach agreement on a stimulus package.

Speaker of the House of Representatives spokesperson Nancy Pelosi wrote on Twitter that Pelosi and Treasury Secretary Stephen Mnuchin “continued to narrow their differences” during a phone conversation.

Pelosi said she was optimistic that a stimulus package bill would be passed before the November 3 election, but that an agreement should be reached by the end of Tuesday to achieve that.

The shares were the highest gainers among the 30 largest stocks on the Topix Sony, which rose 1.83%, followed by Fanuc.

East Japan Railway was the lowest-performing among the main stocks on the Topix, down 4.34%, followed by Central Japan Railway, which fell 3.23%.