TOKYO, Oct 21 (Reuters) - Japan's Nikkei share average fell
nearly 2% on Thursday, weighed down by fresh fears around China
Evergrande Group, concerns ahead of a general election and
worries over the impact of rising costs on corporate outlook.
The Nikkei fell 1.87% to close at 28,708.58, while
the broader Topix lost 1.31% to 2,000.81.
Overnight, the S&P 500 and the Dow rose, with the Dow
hitting an intraday record high, while the Nasdaq lagged as
technology stocks took a breather.
The Nasdaq's weak finish triggered a sell-off in Japanese
technology heavyweights, while investors nervously awaited
whether Prime Minister Fumio Kishida would take decisive
measures to boost the pandemic-beaten economy.
"The ruling LDP (Liberal Democratic Party) would probably
win a majority but it is not clear whether the party would make
changes that would meet market expectations," said Ikuo Mitsui,
a fund manager at Aizawa Securities.
The LDP will likely lose some seats in the Oct. 31 lower
house election, but the ruling coalition it forms with the
Komeito party is expected to maintain a majority, local media
"Also, investors are wary about the potential impact of
rising costs and oil prices as well as supply chain disruptions
on corporate outlook for the second half of the corporate
business year," Mitsui said.
The Hong Kong-listed shares of debt-ridden China Evergrande
lost 12% on Thursday when the company resumed trading
after a more than two-week suspension.
Chip-making equipment maker Tokyo Electron dragged
the Nikkei the most, falling 4.61%. Uniqlo brand clothing shop
operator Fast Retailing lost 2.98% and global
technology start-up investor SoftBank Group fell 2.06%.
Airlines were down 2.1%, declining the most among
the exchange's 33 industry sub-indexes amid concerns about a
possible resurgence of COVID-19 infections as cases in the UK
Oil-related shares shined as crude
Nippon Paint Holdings gained 0.59% after the
world's fourth-largest paint company announced an acquisition of
decorative paints specialist Cromology.
(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri
and Editing by Subhranshu Sahu)