TOKYO, Oct 6 (Reuters) - Japan's Nikkei average reversed
course on Wednesday to hit its lowest levels in over two months
amid concerns over the impact of China's debt crisis, while
modest approval ratings for Japan's Prime Minister Fumio Kishida
The Nikkei share average fell 0.97% to 27,551.00 by
0221 GMT, touching its lowest since Aug. 20 after rising as much
as 1.4% earlier in the session. The broader Topix lost
0.25% to 1,942.93.
"Japanese shares rebounded earlier in the session but the
gains were not as strong as investors had expected, which drove
them to start selling shares," said Seiichi Suzuki, chief equity
market analyst at Tokai Tokyo Research Institute.
Heavyweights led the declines, with Uniqlo clothing shop
operator Fast Retailing losing 2.36%, technology
investor SoftBank Group falling 1.23% and robot maker
Fanuc slipping 2.22%.
Local media poll showed Kishida is struggling to find his
footing with voters just two days after he was voted into office
and launched his new government. One daily showed his approval
rating was at 45%, much lower than his predecessor Yoshihide
Suga's administration when it came into power last year.
"That means Kishida's party will be unlikely to enjoy a land
slide victory at the coming general election," said Kentaro
Hayashi, senior strategist at Daiwa Securities.
Kishida's plans to raise capital gain tax could drive
sell-offs as they want to lock in profits before the tax hike,
Kishida, in his first news conference as prime minister,
said this week tweaking the country's financial income tax rate
will be among options in addressing income disparity.
Sumitomo Osaka Cement rose the most on the Nikkei,
with a 13.21% rise, followed by Taiheiyo Cement, which
gained 7.2% and Pacific Metals Co Ltd, up 5.39%.
Mitsubishi Motors lost the most on the index,
falling 7.55%, followed by Takeda Pharmaceutical,
losing 6.25% and Kawasaki Kisen Kaisha, down 4.48%.
(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri)