Japanese stocks fell today, recording their second consecutive weekly loss.

The main Japanese stock indices closed on Friday with a decline, marking the Nikkei index's second consecutive weekly loss, as investors assessed potential risks ahead of local elections that could see the ruling party lose its majority.

In terms of trading, the Nikkei 225 index NIKKEI closed down by 0.6% at 37,913.92 points, recording a weekly loss of 2.7%. The broader Topix index TOPIX also finished the week lower by 0.7% at 2,618.32 points.

The losses incurred by Japanese stocks were widespread, with investors adjusting their positions on Friday, the last trading day before vote counting begins on October 27. Of the 225 companies listed in the Nikkei, 176 saw their shares decline, while only 48 companies rose, and one stock remained unchanged.

All 33 industry sectors decreased, led by the shipping sector, which fell by 3.6%. Among the major heavyweight stocks in the Nikkei, Advantest Advantest - a semiconductor testing equipment manufacturer - dropped by 2.9%.

Shares of Fast Retailing Fast Retailing also fell, along with Recruit Holdings Recruit Holdings, which declined by 2.4%. The parent company of Uniqlo Uniqlo saw its shares drop by 0.7%, while Konami Group Konami Group - a video game manufacturer - decreased by 2.8%.

The largest percentage losses in the Nikkei were recorded by Sumitomo Pharma Sumitomo Pharma, whose shares fell by 6.3%, followed by shipping companies Kawasaki Kisen Kaisha Kawasaki Kisen Kaisha at 4.3%, and Nippon Yusen KK Nippon Yusen KK at 3.8%.

These movements come at a time when investors are experiencing some tension after recent polls indicated that voters may end the Liberal Democratic Party's dominance, which has lasted for over a decade, potentially forcing the ruling party into power-sharing agreements that could undermine the country's economy.