Japanese shares slide on caution about U.S. stimulus package

  • Reuters
  • Stock Market News
Japanese shares slide on caution about U.S. stimulus package
Credit: © Reuters.

TOKYO, Oct 20 (Reuters) - Japanese shares fell on Tuesday, tracking a lower close on Wall Street, as investors cautiously looked to whether U.S. lawmakers could reach an agreement on a stimulus package against the backdrop of a deadline to reach the deal approaching.

The benchmark Nikkei share average .N225 fell 0.32% to 23,596.49, while the broader Topix .TOPX lost 0.39% to 1,631.60.

All but three of the 33 sector sub-indexes on the Tokyo exchange traded lower. Land transport .IRAIL.T , miners .IMING.T and paper and pulp .IPAPR.T led the declines on the main bourse.

But losses were limited by a rise in U.S. stock futures and a weaker yen against the dollar in early Asian trade.

Overnight, Wall Street's main indexes closed lower as U.S. lawmakers still appeared to struggle to reach an agreement on the coronavirus stimulus. .N

U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" in a 53-minute telephone conversation about the fresh aid package, Pelosi's spokesperson wrote on Twitter.

Pelosi had said she was optimistic that a legislation could be pushed through before Election Day, but an agreement would have to come by the end of Tuesday for that to happen. Exchange Group 8697.T was flat amid reports that the Financial Services Agency would conduct an on-site investigation of the Tokyo Stock Exchange and may issue a business improvement order after a system failure caused a full-day trade suspension earlier this month. Dome Corp 9681.T climbed 2.49% following multiple media reports that Hong Kong hedge fund Oasis Management had submitted a request to the company for an extraordinary shareholders meeting to replace top leaders.

The Mothers Index .MTHR of start-up firm shares bucked the overall sombre trend and gained 0.49%.

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