TOKYO, Oct 4 (Reuters) - Japanese shares shed early gains to
end lower on Monday, as worries over the China Evergrande debt
crisis outweighed positive cues from a strong finish on Wall
Street, while the nation's new premier called for a
The Nikkei share average fell 1.13% to close at
28,444.89, with technology and shipping stocks leading the
decline. Earlier in the session, it rose as much as 1.16% after
five straight sessions of losses. The broader Topix lost
0.62% to 1,973.92.
"The market started falling as soon as it hit its highest
level for the session. This is a typical move when selling
pressure is strong," said Tomoichiro Kubota, a senior market
analyst at Matsui Securities.
"The market is facing a triple pain now, with signs of
Chinese economic slowdown and the U.S. budget issues. Also, we
cannot expect similar monetary policies from Japan's new cabinet
as we had under the Abenomics."
The Evergrande debt crisis continued to cast doubt
over China's economic growth, while the fate of the Biden
Administration's flagship spending bills is not clear yet.
In Japan, Fumio Kishida officially took over as its 100th
prime minister on Monday, but public broadcaster NHK said he was
set to dissolve the body next week and call an election for Oct
His new cabinet members are due to be announced later in the
day but so far, Kishida has failed to impress investors, market
Chip-making equipment maker Tokyo Electron dragged
down the Nikkei the most, with a 3.6% drop. Technology start-up
investor SoftBank Group fell 2.52% and robot maker
Fanuc lost 4.31%.
Shippers tumbled 7.6%, with Kawasaki Kisen
and Nippon Yusen losing 8.42% and 8.07%,
Department store operators rose after Japan lifted its
COVID-19 emergency measures last week, with Isetan Mitsukoshi
Holdings climbing 5.04% and J.Front Retailing
Airlines and railways led the gains
among the exchange's 33 industry subindexes, rising 2.39% and
(Reporting by Junko Fujita; Editing by Subhranshu Sahu and