Nikkei falls as political issue saps risk stance

Japanese shares dropped on Monday as investors responded to opinion polls showing falling support for Prime Minister Shinzo Abe amid a cronyism scandal that has gripped the country.

The Nikkei slipped to more than a one-week low. It fell 1.2 per cent to 21,424.13 in midmorning trade, dropping below its 25-day moving average of 21,671.87.

Earlier it fell as low as 21,366.88, its lowest since March 9, reports Reuters.

The broader Topix shed 0.9 per cent to 1,721.82, with 30 of its 33 subsectors in negative territory.

The country’s exporters underperformed, with TDK Corp falling 2.3 per cent, Taiyo Yuden shedding 2.2 per cent and Panasonic declining 1.9 per cent.

Food companies were also sold, with condiment maker Kikkoman Corp dropping 1.7 per cent and NH Foods sliding 1.9 per cent.