Profit-taking hit both export-dependent and domestically oriented stocks in Tokyo on Tuesday to send the Nikkei 225 down by 0.3 percent to 12,599.43 even though it passed 12,700 for the first time in four years at one point during the day.

The Topix index was also down on the day, by 0.3 percent to 1,286.29.

The iron and steel sector was down 1.2 percent at the end of the day despite having hit an eight-year high at one point on the day.

The real estate sector dropped by 0.8 percent. Pre-election nerves took much of the blame for the retreats.

The election is slated to take place on Sunday, and investors seem to be afraid that the result will produce no majority and a resulting lack of direction on policy matters.

Profit-taking even hit some stocks that should have benefited from strong economic news. Fast Retailing lost 1.4 percent to ¥8,490 even though it announced on Monday that it would spend ¥400 billion for mergers and acquisitions with the goal of increasing its sales target, a plan endorsed by Merrill Lynch on Tuesday.

In the steel sector, Nippon Steel lost 0.6 percent to ¥342, while JFE fell 1.5 percent to ¥3,270. There were some advances on the day. In the construction sector, general contractor Taisei gained 2 percent to ¥418.

Additionally, Nippon Telegraph & Telephone added 1.4 percent to ¥490,000 on the news that it had spent over ¥500 billion buying back shares from the government, sending the government’s share of the company down to 33.7 percent and ending the company’s privatization drive.