(MENAFN) Japanese equities tumbled Tuesday in a sharp market reaction to mounting political turmoil, as the Komeito Party's abrupt exit from its decades-long alliance with the ruling Liberal Democratic Party (LDP) triggered a wave of investor anxiety.

The Nikkei 225, Japan’s main stock benchmark, plummeted 1,241.48 points, or 2.58%, to close at 46,847.32 — marking its steepest single-day loss in months.

Markets came under pressure early in the session and selling escalated through the afternoon, with foreign short-term traders ramping up futures hedging. At one stage, the Nikkei’s losses swelled past 1,500 points.

Risk-off sentiment swept through the market, prompting widespread dumping of blue-chip stocks.

The broader TOPIX index also suffered, losing 63.60 points, or 1.99%, to end the day at 3,133.99.

On the Tokyo Stock Exchange Prime Market, declining issues overwhelmed risers, with 1,326 stocks falling, 264 gaining, and 25 unchanged.

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