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Japanese stocks fell to more than one-week lows on Wednesday morning as ex-dividend share price adjustments dented high yielders such as automakers, offsetting gains in tech firms which tracked strength in their US counterparts.
The Nikkei dropped 0.3 per cent, or 59.22 points, to 20,270.97 by the midday break, after falling to as low as 20,213.66 earlier, the weakest level since September 19.
About 130 points were cut from the Nikkei by the ex-dividend price adjustment, according to market participants. High-yielding stocks, including automakers, railway operators as well as banks and securities firms underperformed.
“The Nikkei would have been stronger today without an ex-dividend effect,” said Yutaka Miura, a senior technical analyst at Mizuho Securities. “The Japanese market's sentiment itself is positive helped by a weaker yen after Yellen's comments.”
US Federal Reserve Chair Janet Yellen said the Fed needs to continue gradual rate hikes despite uncertainty about the path of inflation. The dollar was at 112.27 yen, bouncing back from Tuesday's low of 111.50.
Toyota Motor Corp dropped 0.8 per cent, Nissan Motor Co shed 2.4 per cent, West Japan Railway Co declined 1.7 per cent, while Mizuho Financial Group fell 1.8 per cent and Daiwa Securities Group tumbled 1.8 per cent.
Some tech shares outperformed the overall market, with Advantest Corp surging 2.6 per cent and Panasonic Corp gaining 1.1 per cent.
Elsewhere, agricultural chemical maker Nihon Nohyaku tumbled 4.3 per cent after it cut its operating profit outlook to 3.1 billion yen from its previously forecast 3.9 billion yen for the year ending September. The broader Topix shed 0.6 percent to 1,663.22.
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