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Tokyo stocks fall slightly in morning on ex-dividend selling
The 225-issue Nikkei Stock Average declined 15.36 points, or 0.05 percent, from Monday to 29,369.16. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 21.13 points, or 1.06 percent, at 1,972.21.
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A bicycle rider passes an electronic quotation board displaying share prices of the Tokyo Stock Exchange (2nd L) and numbers of Asian markets in Tokyo on September 17, 2020. Japan's central bank on September 17 said it would maintain its ultra-loose monetary policy as the virus-hit economy gradually picks up, with no big changes announced the day after new Prime Minister Yoshihide Suga took office. (Agence France Presse/Kazuhiro Nogi)
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okyo stocks fell slightly Tuesday morning as investors sold shares of companies whose business year ends this month after securing rights for dividend payments.
The 225-issue Nikkei Stock Average declined 15.36 points, or 0.05 percent, from Monday to 29,369.16. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 21.13 points, or 1.06 percent, at 1,972.21.
Decliners were led by insurance, pulp and paper, and electric power and gas issues.
The dollar approached the 110 yen line as investors sold the yen, perceived as a safe haven currency, on improved risk appetite after U.S. President Joe Biden said overnight 90 percent of adults in his country will be eligible to get a coronavirus vaccine within the next three weeks, dealers said.
At noon, the dollar fetched 109.96-97 yen compared with 109.78-88 yen in New York and 109.65-66 yen in Tokyo at 5 p.m. Monday.
The euro was quoted at $1.1765-1766 and 129.37-38 yen against $1.1761-1771 and 129.22-32 yen in New York and $1.1786-1787 and 129.24-28 yen in Tokyo late Monday afternoon.
The Nikkei moved narrowly around the previous day's closing level before finishing the morning lower amid selling pressure after the deadline Monday to become eligible for dividend payments, brokers said.
"Ex-dividend selling accounts for about a 180-point decline of the Nikkei, and considering that, the index was virtually in positive territory," said Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute.
Falls in financial issues, including Nomura Holdings, also weighed on the market. Nomura, Japan's largest brokerage and investment bank, said the previous day it could post a "significant" loss as a result of its American subsidiary's transactions with a client in the United States.
But Sengoku said the impact of Nomura's announcement on the market was expected to be limited while some cautiousness is still required for possible swings.
On the First Section, declining issues outnumbered advancers 1,708 to 404, while 48 ended the morning unchanged.
Nomura Holdings lost 10.50 yen, or 1.7 percent, to 592.50 yen. Mizuho Financial Group sagged 38.50 yen, or 2.3 percent, to 1,632.50 yen and Sumitomo Mitsui Financial Group decreased 90 yen, or 2.2 percent, to 4,080 yen.
Bucking the downward trend, airlines were higher as Biden's vaccine rollout plan contributed to hopes for eased travel restrictions.
Japan Airlines climbed 66 yen, or 2.7 percent, to 2,481 yen while ANA Holdings advanced 87.00 yen, or 3.5 percent, to 2,591.50 yen.
