TOKYO, Oct 14 (Xinhua/APP): Tokyo stocks fell sharply on Tuesday amid growing political uncertainty following the Komeito Party’s withdrawal from its long-standing coalition with the Liberal Democratic Party (LDP).
The benchmark Nikkei stock index, the 225-issue Nikkei Stock Average, closed down 1,241.48 points, or 2.58 percent, at 46,847.32, its steepest drop in months.
Investors engaged in broad-based selling to avoid political risk, pushing many blue-chip stocks lower.
The selloff intensified in the afternoon, fueled by foreign short-term traders who accelerated futures hedging, at one point driving the Nikkei’s losses to over 1,500 points.
The TOPIX index also fell sharply, closing down 63.60 points, or 1.99 percent, at 3,133.99.
On the Tokyo Stock Exchange Prime Market, decliners far outnumbered gainers, with 1,326 stocks down, 264 up, and 25 unchanged.