Japan stocks end lower as firmer yen, U.S. political uncertainty weigh

By Stanley White
TOKYO, Oct 22 (Reuters) - Japanese shares ended weaker on
Thursday, as a firmer yen threatened earnings of exporters and
amid fears that agreement on a key U.S. stimulus bill will not
be reached until after the presidential election on Nov. 3.
The Nikkei 225 Index .N225 ended down 0.70% at 23,474.27,
while the broader Topix .TOPX fell 1.09% to 1,619.79.
The yen JPY=D3 jumped to a one-month high against the
dollar on Wednesday as investors grew more concerned about
stalled negotiations over a new round of U.S. fiscal stimulus.
Some traders are also reducing their exposure to riskier
assets ahead of the U.S. elections, which could cap gains in
Japanese shares. Rising COVID-19 cases in Europe and the United
States also hurt sentiment.
"There are a lot of people waiting to buy stocks on the
dip," said Ayako Sera, market strategist at Sumitomo Mitsui
Trust Bank.
"At the same time, the upside is limited because there is
still uncertainty in the market about the election and the
coronavirus."
The underperformers among the Topix 30 were Central Japan
Railway Co 9022.T down 3.35%, followed by East Japan Railway
Co 9020.T losing 3.08%.
Shares of ANA Holdings Inc 9202.T ended down 4.08%. The
airline hit its lowest level in more than two months after media
reports that ANA will book a record net loss as the pandemic
devastates global travel demand. Weighed down partly by a stronger yen, Toyota Motor Co
7203.T fell 0.61%, Honda Motor 7267.T lost 1.93% and Sony
Corp 6758.T slid 0.98%.
The stocks that gained the most among the top 30 core Topix
names were industrial robot maker Fanuc Corp 6954.T up 0.26 %,
followed by Japan Tobacco Inc 2914.T rising 0.05%.
There were 40 advancers in the Nikkei index against 180
decliners
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.73 billion, compared with the average
of 1.09 billion in the past 30 days.