Tokyo shares sink as strong yen hits exporters

Tokyo: Tokyo shares tumbled Monday as a stronger yen dragged on major exporters while sentiment was also soured by news that most listings on the Topix had gone ex-dividend.

More than half the companies in the broad Topix index of all-first section shares traded ex-dividend -- a period between when dividends are announced and when they are paid -- as they wrap up their fiscal second-quarter. Dealers who buy during that interval are not entitled to any returns.

"Investors had been buying to get dividends, so shares that had been strong for that reason may be sold," Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News.

The benchmark Nikkei 225 index shed 1.32 percent, or 235.40 points, to end at 17,645.11, while the Topix was down 1.04 percent, or 15.14 points, at 1,438.67.

On currency markets, the dollar fell to 120.26 yen from 120.49 yen Friday, hurting profits of Japanese exporters.

Investors were looking ahead to US jobs data and a Bank of Japan business confidence survey later in the week.

A strong result for Friday`s US non-farm payrolls will likely to reinforce calls for an early rate move by the Federal Reserve.

The Japanese central bank is to release its quarterly Tankan business confidence report Thursday, with markets still on edge owing uncertainty about US monetary policy and concerns about the slowdown in Chinese growth.

Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo, said he expected the Tankan to hold steady, adding that he was paying attention to a subsequent report on firms` inflation expectations the next day.

"If they expect inflation to go down further, the BoJ may be inclined to do more," he said, referring to a possible expansion of the Japanese central bank`s record stimulus programme.

In Tokyo share trading, Sony fell 3.55 percent to 2,995.5 yen, Toyota dropped 2.02 percent to 7,049 yen and Suzuki lost 2.14 percent to 3,693 yen. Mobile carrier SoftBank lost 2.27 percent to 5,772 yen.

Embattled electronics maker Sharp recovered some ground after a deep plunge Friday, when it said it will miss its operating profit forecast for the first half of the year. The company shares gained 0.68 percent to end at 147 yen Monday.

However, market heavyweight Fast Retailing, operator of the Uniqlo clothing chain, gained 1.47 percent to 47,490 yen after its chairman shrugged off concerns China`s slowing growth would affect the firm`s business.