At the open of Tokyo trading on the 29th, buying and selling were mixed, and the Nikkei Average started ¥319 lower than the previous day at ¥65,557. While the downward pressure from the ex-dividend adjustment is expected to be around ¥380, some market participants believe the downside will be limited.
Following the previous day's decline in major U.S. stock indexes, buying and selling were mixed at the Tokyo market's open. The Nikkei Average began trading at ¥65,557, down ¥319 from the previous day.
The burden from the U.S. market remained after the open, and selling into the close left both the Nikkei Average and TOPIX at their session lows. From a supply-demand perspective, selling dried up at times, but this contributed to weakening downside support.
As concerns over rising interest rates globally intensified, movements in the yield on newly issued 10-year Japanese government bonds were also watched in the Tokyo market as a factor influencing investor sentiment. Movements in South Korea's KOSPI were also viewed as potentially affecting the Japanese market.
The downward pressure from the September dividend ex-rights adjustment is estimated at approximately ¥380 today, and price movements are likely to be influenced in part by dividend-related developments.