TOKYO, Oct 27 (Reuters) - Japan's Nikkei share average
declined on Wednesday, giving up most of the strong gains of the
previous session, as investors turned cautious ahead of lower
house elections on Sunday that could drain support for the
country's new prime minister.
Earnings were also in focus, with Canon and Nidec
sliding after disappointing investors, while Shinko
Electric Indutries and Shimano led gains on
the Tokyo bourse after upwardly revising their outlooks.
The Nikkei dropped 159.40 points, or 0.55%, to
28,946.61 at the midday break, after jumping about 500 points
the previous day amid earnings optimism.
The broader Topix slid 0.42% to 2,009.84, with 26 of
its 33 subsectors declining.
One month into his tenure, Prime Minister Fumio Kishida
leads his Liberal Democratic Party into lower house elections on
Sunday. A shock by-election loss last weekend has injected an
additional level of uncertainty into the contest, with the LDP
expected to lose seats but retain an overall majority.
"If the LDP can't secure a majority by itself, that will
weaken Kishida's position and lead to political instability,"
said Masayuki Kichikawa, chief macro strategist at Sumitomo
Mitsui Asset Management.
Inside the LDP, "many will wonder if the party can survive
the upper house election next year," and will oust Kishida,
Kishida's predecessor, Yoshihide Suga, only lasted a year in
Electrical component-maker Fujikura was the biggest
decliner on the Nikkei, falling 8.3%, followed by Canon's 5.5%
Canon revised its operating profit forecast lower as a
semiconductor shortage and high crude oil prices pushed up
Nidec fell 3.3% after the precision electric motor maker
revised its profit forecast upwards, falling short of market
At the other end, Shinko Electric Industry surged 12.1% and
Shimano jumped 8.6%.
Specialty chemicals company Nitto Denko and Hitachi
Construction Machinery also gained strongly after
revising forecasts higher, adding 6.4% and 6.3%, respectively.
(Editing by Rashmi Aich)