Tokyo Stocks Plummet on Ex-Dividend Date and Rate Fears
Tokyo stocks took a hit on September 29 as investors adjusted for interim dividends and remained cautious over high Japanese bond yields, a weak yen, oil prices, and profit-taking after the recent rebound.
The Nikkei 225 closed at 65,481, down 396 points, while the broader TOPIX fell 70.87 points, or 1.72%, to 4,041.13.
The ex-dividend date for many companies with September-end interim payouts contributed significantly to the decline, with market participants estimating that this effect pushed the Nikkei down by about 380 yen.
Banks and insurers were particularly affected, as they had been strong before the dividend deadline due to both dividend demand and expectations for higher interest rates. However, after the ex-dividend adjustment, these stocks faced selling pressure.