[TOKYO] Japanese stocks ended lower on Wednesday amid uncertainty about the results of US Senate runoff elections in Georgia, while sentiment was also dented by a likely announcement of a state of emergency in Tokyo and surrounding cities later this week.
The Nikkei 225 Index ended down 0.38 per cent to 27,055.94 after gaining as much as 0.17 per cent. The broader Topix rose 0.28 per cent to 1,796.18. If Democrat challengers win, it would be easier for President-elect Joe Biden to pass big fiscal spending, which is generally considered a positive. A Democrat sweep could also make it easier for Mr Biden to raise corporate taxes, a negative factor for stocks.
However, margins were razor thin and official results will not be known until the following day, leaving the outcome up in the air. "If we get more clarity on what type of policies will emerge from a Biden administration as a result of the Georgia vote, then the trend for markets could change," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.