The Nikkei 225 Index fell 1% to around 47,590, while the broader Topix Index lost 0.7% to 3,175 in post-holiday trade on Tuesday, with Japanese shares declining for a second session as political uncertainty weighed on sentiment and unwound the so-called “Takaichi trade.” On Friday, Japan’s Komeito party announced its exit from the ruling coalition led by the Liberal Democratic Party, reflecting growing skepticism over Sanae Takaichi’s policies and complicating her path to become the next prime minister. The “Takaichi trade” had been driven by expectations of fiscal expansion and delayed rate hikes, which in turn lead to yen weakness, stock gains, and a steeper yield curve. Major decliners included SoftBank Group (-1.6%), IHI Corp (-0.5%), Mitsubishi UFJ (-0.9%), Kawasaki Heavy Industries (-1%), and Sumitomo Mitsui (-1.3%).