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Tokyo shares open lower after Wall Street slip
TOKYO, Sept 27, 2019 (BSS/AFP) – Tokyo shares opened lower Friday after
losses on Wall Street while many local shares went ex-dividend, increasing
selling pressure.
The Nikkei index dropped 0.52 percent or 115.75 points to 21,932.49 yen in
early trade, while the broader Topix index lost 0.70 percent or 11.31 points
to 1,611.96.
Tokyo shares were under pressure but expected to stay within a narrow
range, with analysts forecasting the market would regain its buoyancy next
week.
The market overall has been seen as on a solid footing, with investors
welcoming moves toward the resumption of US-China trade talks, while the
dollar remains relatively strong.
Selling in Tokyo came Friday largely as companies went ex-dividend on
Thursday, meaning investors no longer qualify for the dividend payout.
Many investors bought shares during the days leading up to yesterday.
“The Nikkei index might not be able to make a full adjustment today, but
we believe it is not that significant,” Okasan said.
“Today’s Japanese market is likely to stay within a range. We expect a
clear rebound from next week,” it added.
The Tokyo market has been enjoying a general upswing, supported by
receding worries over the US-China trade friction.
The general strength of the dollar also helped.
The US currency stood at 107.73 yen, nearly flat from 107.88 seen in New
York Thursday, but up markedly from 105.70 seen just a month ago.
On the market, Apple supplier Japan Display dropped 8.96 percent to 61 yen
after a Chinese fund said it would not take part in helping the struggling
parts maker.
The Japanese firm said it might not be able to continue operations without
the help.
But Apple was considering boosting its investment in Japan Display, the
Wall Street Journal said.
Among other major shares, Toyota dropped 1.12 percent to 7,343 yen. Sony
lost 1.37 percent to 6,352 yen.
Nintendo fell 0.15 percent to 40,600 yen. Tyremaker Bridgestone slipped
0.65 percent to 4,265.
BSS/AFP/HR/0922