TOKYO, Oct 6 (Reuters) - Japan's Nikkei reversed course on
Wednesday to close at a more than six-week low, dragged down by
concerns over higher interest rates, China's slowdown and modest
approval ratings for the country's new prime minister.
The Nikkei share average fell 1.05% to close at
27,528.87, its lowest since Aug. 23. The index, which gained as
much as 1.4% earlier in the session, closed in the red for a
eighth straight sessions.
The broader Topix slipped 0.3% to 1,941.91.
"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 declines, with Uniqlo clothing shop
operator Fast Retailing losing 3.1%, chip making
equipment maker Tokyo Electron down 2.08% and
technology investor SoftBank Group falling 2.07%.
Local media poll showed Prime Minister Fumio Kishida is
struggling to find his footing with voters just two days after
he 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.
Oil explorers and refiners advanced
3.8% and 3.1%, respecively, amid sky-high oil prices, while
banks gained 2.84% on hopes higher rates would boost
(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri
and Rashmi Aich)