Tokyo Shares Drop By Break On Dividend Payments

TOKYO, (UrduPoint / Pakistan Point News - 28th Sep, 2016 ) - Tokyo shares fell Wednesday morning after the previous day's rally as more than half the firms on the Topix index traded without the right to a September dividend payment.

A strong Yen also hit exporters, from Toyota to Uniqlo operator Fast Retailing, while energy shares were under pressure ahead of the start of a key OPEC oil cartel meeting later Wednesday. Tokyo's drop followed a rally on global markets after Hillary Clinton was judged to have won the first presidential debate with Republican rival Donald Trump -- the Democrat is widely seen as a safer pair of hands politically and economically.

At the lunch break, Tokyo's benchmark Nikkei 225 index was down 1.

54 percent, or 257.32 points, at 16,426.61. The broader Topix fell 1.63 percent, or 22.03 points, to 1,327.19 with 1,094 of the index's 1,966 members going ex-dividend.

The morning fall was largely due to many shares trading on an ex-dividend basis, which means investors who buy them today are not entitled to the next dividend payment. "With big events behind us, and ahead of quarterly corporate earnings reports, participants are devoid of a mindset for any active stock investing," said Chihiro Ohta, a Tokyo-based senior strategist with SMBC Nikko Securities.

The Dollar bought 100.54 yen on Wednesday, slightly up from 100.36 yen in New York but still off 100.88 yen earlier Tuesday in Asia.