Most Japan Stocks Fall Ahead of U.S. Presidential Election Vote

  • Softbank gains on better-than-expected profit; Dowa declines
  • Clinton 3 points ahead of Trump in Bloomberg national poll

What the U.S. Election Means for Emerging Markets

Most Japanese shares fell, with investors taking a waiting stance as Americans prepare to go to the polls.

The benchmark Topix index climbed slightly at the close, though five shares retreated for every four that advanced. Volume was 5.8 percent below the 30-day average. The measure jumped the most in almost seven weeks on Monday. A Bloomberg Politics national poll put Democratic candidate Hillary Clinton ahead of Republican nominee Donald Trump by three percentage points, increasing investors’ confidence in risk assets globally. The poll was conducted before the Federal Bureau of Investigation reiterated Sunday that Clinton’s controversial handling of her e-mails wasn’t a crime.

SecurityPercent ChangePrice
Topix+0.1%1,363.49
Nikkei 225-0.03%17,171.38
Yen-Dollar+0.1%104.36

“It’s difficult to say until we see the results, but shares do seem to be pricing in a Clinton victory,” said Ryuta Otsuka, a strategist at Toyo Securities Co. in Tokyo. “We started high but we’re now stumbling. It’s really difficult to move further.”

Exporters including carmakers and precision instruments manufacturers were among industry groups that gained on the Topix. Drugmakers weighed the most on the gauge, with Ono Pharmaceutical Co. sinking 5.1 percent.

More than 150 Topix companies were scheduled to report earnings on Tuesday, including Toyota Motor Corp., JX Holdings Inc. and Japan Petroleum Exploration Co. Among those that have reported:

  • Softbank Group Corp. added 1.3 percent after the company reported better-than-projected second-quarter profit, with the wireless and internet businesses in Japan bringing in cash and Sprint Corp. showing signs of improvement.

  • Dowa Holdings Co. sank 7.1 percent after leaving its full-year forecasts unchanged. The metal products maker last month reported preliminary first-half results that beat earlier targets, which had raised market expectations for a full-year forecast increase, according to Mitsubishi UFJ Morgan Stanley Securities Co.

  • Nichi-Iko Pharmaceutical Co. declined 9.2 percent after reporting first-half operating profit plunged 31 percent from a year earlier. The drugmaker also lowered its full-year operating-profit forecast by 54 percent. Nomura Holdings Inc. said earnings are negative and reflect M&A and higher research and development costs.

  • DMG Mori Co. slumped 9.5 percent after the machine tool maker slashed its operating-profit forecast to 2 billion yen ($19 million) from 25 billion yen.

Futures on the S&P 500 Index fell 0.1 percent. The underlying equity gauge added 2.2 percent on Monday as relief swept over markets after the FBI announcement, sending the CBOE Volatility Index tumbling 17 percent.

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