This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) -- Tokyo stocks were lower Monday morning as sentiment was dampened by growing uncertainty over how Japan's ruling Liberal Democratic Party will fare in the Oct. 31 general election after it lost one of two by-elections held on the weekend.
The 225-issue Nikkei Stock Average fell 284.50 points, or 0.99 percent, from Friday to 28,520.35. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 5.10 points, or 0.25 percent, at 1,997.13.
Decliners were led by information and communication, rubber product, and food issues.
The U.S. dollar hovered in the upper 113 yen range, caught in a tug of war between selling on a dip in U.S. Treasury yields and buying by Japanese importers for settlement purposes, dealers said.
At noon, the dollar fetched 113.76-77 yen compared with 113.45-55 yen in New York and 113.88-90 yen in Tokyo at 5 p.m. Friday.
The euro was quoted at $1.1648-1652 and 132.52-56 yen against $1.1641-1651 and 132.11-21 yen in New York and $1.1641-1643 and 132.57-61 yen in Tokyo late Friday afternoon.
High-tech issues dragged the Nikkei index down from the outset, tracking declines on the technology-heavy Nasdaq index late last week. Losses were briefly pared in the morning on par with U.S. stock futures.
Investors were also concerned as the LDP seems to be facing an uphill battle in the national election after losing in one of two House of Councillors by-elections Sunday. Prime Minister Fumio Kishida may face difficulty managing the government stably if the ruling parties fail to perform well.
"A wait-and-see attitude has strengthened in the market after the results of the by-election, amid a view that the general election next weekend may not produce good results (for the LDP)," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
Although media polls suggest the LDP and its coalition partner, Komeito, will retain their majority in the 465-member House of Representatives, the ruling party faces the prospect of losing seats as opposition forces work together to consolidate candidates across hundreds of voting districts.
Meanwhile, blue chip high-tech shares such as SoftBank Group and Tokyo Electron faced selling, as technology shares are strongly tied to the Nasdaq index, Miura added.
SoftBank Group lost 257 yen, or 3.9 percent, to 6,353 yen, while Tokyo Electron slumped 1,100 yen, or 2.2 percent, to 49,650 yen.
Bucking the downward trend, energy-related shares were higher after crude oil futures rose in New York trading late last week. Inpex soared 23 yen, or 2.4 percent, to 974 yen, and Idemitsu Kosan gained 40 yen, or 1.2 percent, to 3,280 yen.
Chugai Pharmaceutical surged 350 yen, or 9.1 percent, to 4,191 yen, after the firm revised upward Friday its earnings forecast for the year through December from the previous estimate in February.
On the First Section, declining issues outnumbered advancers 1,109 to 932, while 139 ended the morning unchanged.
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