Japan Stocks Closed Lower Amid Hazy US Senate Race

Japanese stocks closed lower on Wednesday, amid uncertainty surrounding the results of two-seat re-election for the US Senate in Georgia, as sentiment hurt the prospect of declaring a state of emergency in Tokyo and surrounding cities this week.

The Nikkei index ended the session down to about 28 thousand points after slight gains, while the broader Topix index rose to about 17 thousand points.

A Democratic two-seat victory would make President-elect Joe Biden’s endorsement of fiscal spending packages easier and is generally a positive thing.

It would also be easier for Biden to raise corporate taxes, which is a negative factor for Stocks.

The competition is intense and the official results will not be announced until the next day, which causes confusion.

Sony Corp. recorded the biggest drop on the Topix 30 index, down by more than 2%.

The top gainer on the Topix 30 index was Sumitomo Mitsui Financial Group, whose share increased by 4%, followed by Mizuo Financial Group, which rose 3%.