By Stanley White
TOKYO, Jan 6 (Reuters) - Japanese stocks ended lower on Wednesday amid uncertainty about the results of U.S. Senate runoff elections in Georgia, while sentiment was also dented by a likely announcement of a state of emergency in Tokyo and surrounding cities later this week.
If Democrat challengers win, it would be easier for President-elect Joe Biden to pass big fiscal spending, which is generally considered a positive. A Democrat sweep could also make it easier for Biden to raise corporate taxes, a negative factor for stocks. margins were razor thin and official results will not be known until the following day, leaving the outcome up in the air.
"If we get more clarity on what type of policies will emerge from a Biden administration as a result of the Georgia vote, then the trend for markets could change," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.
"I don't expect a big sell-off, but Japanese stocks have already rallied so much last year that upside this year will be somewhat limited."
There were 161 advancers on the Nikkei index against 60 decliners.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 1.04 billion, compared to the average of 1.18 billion in the past 30 days.
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