Nikkei 225 Takes Hit from Ex-Dividend Adjustment and Rate Worries

The Nikkei 225 closed at 65,481.27 on Tuesday, down 396.35 points or 0.60% from Monday's close of 65,877.62.

The decline was the second in a row, following Monday's drop of 486.58 points to 65,878.

A large part of the drop was due to the ex-dividend adjustment for September interim dividends, which mechanically lowers the prices of dividend-paying stocks and weighs on the index.

Other factors contributing to the decline included high Japanese bond yields, a weak yen, oil prices, and profit-taking after the recent rebound.