Tokyo stocks fell Thursday morning, with investors offloading shares after locking in dividend rights before the end of the current fiscal year and selling to secure profits following the Nikkei index nearing its all-time high the previous day.
The 225-issue Nikkei Stock Average fell 479.29 points, or 1.18 percent, from Wednesday to 40,283.44. The broader Topix index was down 36.54 points, or 1.31 percent, at 2,762.74.
The U.S. dollar was subdued in the lower 151 yen range amid wariness over currency intervention by Japanese authorities, after government and Bank of Japan officials held an emergency meeting Wednesday following the yen's fall to a 34-year low to near the 152 line.
At noon, the U.S. dollar fetched 151.36-37 yen compared with 151.27-37 yen in New York and 151.70-72 yen in Tokyo at 5 p.m. Wednesday.
The euro was quoted at $1.0822-0823 and 163.80-83 yen against $1.0823-0833 and 163.69-79 yen in New York, and $1.0827-0828 and 164.25-29 yen in Tokyo late Wednesday afternoon.
Stocks were lower from the outset amid selling pressure after the deadline to become eligible for year-end dividend payments passed, with investors also locking in gains after the Nikkei approached the 41,000 line on Wednesday, analysts said.
Amid a lack of fresh trading cues, "high-dividend stocks like bank and securities in particular drew selling today," said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Caution over a possible yen-buying intervention by Japanese authorities also weighed on sentiment, as the yen's appreciation would decrease overseas profits for exporters upon repatriation.
