The Nikkei 225 Index dropped 0.2% to below 39,200, while the broader Topix Index fell 0.3% to 2,745 on Wednesday, trimming gains from the previous session as caution gripped the market following political turmoil in South Korea.
South Korean President Yoon Suk Yeol unexpectedly declared martial law late Tuesday, citing efforts to prevent opposition parties from disrupting the parliamentary process. However, he reversed the decision after the National Assembly voted against the measure.
In Japan, investors remained focused on the outlook for monetary policy, with speculation that the Bank of Japan may raise interest rates later this month. Technology stocks led the decline, with notable losses from Disco (-0.3%), Lasertec (-1.5%), Tokyo Electron (-0.4%), SoftBank Group (-1.8%), and Hitachi (-0.2%).
Souce: Trading Eonomics
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