The Nikkei 225 Index fell 1.11% to close at 52,991 while the broader Topix Index dropped 0.84% to 3,626 on Tuesday, with Japanese shares declining for the fourth straight session as mounting fiscal concerns sent Japanese bond yields surging to new highs. Pressure intensified after Prime Minister Sanae Takaichi proposed cutting the sales tax on food to 0%, stoking fears over fiscal sustainability as it remains unclear how the government would offset the lost revenue. Takaichi also said she will dissolve parliament at the end of the week and hold a general election on Feb. 8, where her party is expected to gain seats and advance fiscal expansion and other policies. Technology stocks led the selloff, with SoftBank Group (-3.3%), Disco Corp (-3.9%), Fujikura (-2.4%), Advantest (-3.1%) and Tokyo Electron (-2.6%) among the biggest decliners.
