TOKYO, Sept 28 (Reuters) - Japanese shares ended lower on
Tuesday, as heavy losses in chipmakers and shippers eclipsed
investor hopes for a steady economic growth momentum under a new
political leadership in the run-up to a ruling party election.
The Nikkei share average dipped 0.19% to close at
30,183.96, after falling as much as 0.78% earlier in the
session. The broader Topix edged down 0.29% to 2,081.77.
"Losses eased because investors have realized Japan is a
preferred market globally right now," Shigetoshi Kamada, general
manager at the research department at Tachibana Securities said.
"China has bigger risks due to Evergrande's debt issues, and
the U.S. economy might have peaked out. Outlook of Germany's
politics is not clear."
The Nikkei gained more than 7% so far this month in the
run-up to the Liberal Democratic Party's leadership election,
which will effectively choose the new prime minister.
Irrespective of who becomes the prime minister, investors
are now confident that Japan's political base will be stable
under the current coalition, Kamada added.
Japan's economic growth could accelerate as the country is
set to lift a coronavirus state of emergency in all regions on
Thursday amid a drop in COVID-19 infections.
Chip heavyweights Advantest lost 3.57%, Tokyo
Electron slipped 1.05% and Shin-Etsu Chemical
Shippers led the decline among the Tokyo Stock
Exchange's 33 sub-indexes with a drop of 8.61%.
Kawasaki Kisen Kaisha tumbled 14.45%, making it the
biggest percentage loser on the Nikkei, followed by Nippon Yusen
losing 8.18%, and Mitsui OSK Lines down 7.04%.
Oil explorers climbed the most with Inpex
gaining 4.2% and Japan Petroleum Exploration
(Reporting by Junko Fujita; Editing by Subhranshu Sahu and