Japan's Nikkei falls for third session on corporate outlook concerns
The Nikkei fell 0.79% to 40,674.55. The broader Topix declined 0.75% to 2,908.64.
Japan is in the middle of its earnings season, and investors are cautious as a 15% tariff to be imposed on its exports to the United States could hit corporates, said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management.
The tariff, part of the trade deal Japan struck with the U.S. last week, is lower than the 25% that U.S. President Donald Trump had earlier threatened to impose on the country.
That, and expectations that Prime Minister Shigeru Ishiba would step down sent the Nikkei to its highest level in a year last week, Ueno said.
Nikkei ends lower as investors gauge corporate earnings
'The market hoped someone who promotes measures to stimulate the economy would replace him (Shigeru Ishiba),' he said.
Ishiba vowed to remain in his post after his ruling coalition suffered a bruising defeat in upper house elections, prompting some in his own party to doubt his leadership as the opposition weighed a no-confidence motion.
On Tuesday, chip-related stocks led the decline, with Lasertec falling 8.3% to become the worst performer on the Nikkei.
Tokyo Electron fell 1.2% to become the biggest drag for the Nikkei. Advantest slipped 1%.
Nitto Denko fell 3% after the industrial materials maker posted a 16% decline in quarterly operating profit.
All but seven of the Tokyo Stock Exchange's 33 industry sub-indexes fell. The auto sector lost 1.83% to become the worst performer.
Bucking the trend, Nomura Research jumped 8.33% after the consulting and IT solutions provider reported a 17% rise in quarterly net profit.
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