Nikkei Falls as Ex-Dividend Drag and Higher Yields Weigh on Tokyo

Tokyo stocks dropped on September 29, with the Nikkei 225 concluding at 65,481, a 396-point decline. The decrease was driven by the September 30 ex-dividend date, weaker U.S. stock performance, higher bond yields, and oil-related inflation worries. The broader TOPIX index fell 70.87 points to 4,041.13. Around 85% of Prime Market stocks declined, while only 11% increased.

The Nikkei opened at 65,558 but quickly lost momentum, reaching a high of 65,805 before selling pressure emerged as investors adjusted positions following the September dividend rights date. Later, the index fell as low as 64,699 before recovering some of the loss. The final drop of 396 points was smaller than the intraday decline, primarily due to late index-linked buying and renewed support for semiconductor-related shares.

The ex-dividend impact, estimated at about 380 points, significantly contributed to the Nikkei's decline, while the TOPIX suffered a sharper percentage-based fall due to its broader inclusion of dividend-paying shares. Prime Market trading activity was high, with 2.44 billion shares exchanged worth 7.3224 trillion yen, reflecting dividend adjustments, index flows, and repositioning after the Nikkei's recent volatility.

Despite the headline fall, late buying in futures and semiconductor shares prevented a deeper close. The Nikkei CNBC-style market commentary emphasized the contrast between the headline fall and the adjusted picture, noting that the market appeared weak due to the ex-dividend drop but still had potential for recovery in key areas.