[ad_1]
* The ex-dividend sale of ETF funds also weighs on the market
* Bad machine controls also dampen the mood
By Ayai Tomisawa
TOKYO, July 8 (Reuters) – Japan's Nikkei fell on Monday as a result of an unexpected drop in US employment data that dampened market expectations of aggressive rate cuts. this month.
Poor national economic data also weighed on the environment. Japan's main machinery orders have fallen over the past eight months, a worrying sign that global trade tensions are weighing more heavily on business investment.
The average Nikkei share fell by 0.9% to 21,555.60 points in the middle of the morning.
After Friday's strong Friday non-farm payroll data, traders lowered expectations, the Federal Reserve will cut rates by 50 basis points at its next policy meeting on July 30-31. But they are still waiting for a quarter point reduction.
"Market expectations of an aggressive decline in US rates have increased but the mood has changed this weekend," said Takashi Ito, a stock market strategist at Nomura Securities.
Financials weathered weakness after US Treasury yields rose on Friday as a result of the jobs report. The Mitsubishi UFJ financial group grew by 0.7%, the Sumitomo Mitsui financial group by 0.3% and the Dai-ichi Life Holdings by 0.5%.
In addition, the market was also under pressure due to sales linked to the closing dates of pbadive funds in early July, most exchange-traded funds being ex-dividends on Monday and Wednesday this week.
As the funds sell stocks to fund their dividend distributions, Daiwa Securities expects there will probably be about 330 billion yen sold for spot shares and 300 billion yen on futures, on Monday. Wednesday.
Fanuc Corp lost 1% and Komatsu Ltd sold 1.1%.
The broader Topix fell 0.7% to 1,582.15.
Source link
