TOKYO, Sept 24 (Reuters) - Japanese shares slipped on
Thursday following hefty overnight losses on Wall Street after
U.S. data reaffirmed concerns of a slow global economic
recovery, though investor hopes of chunky dividends by next week
helped limit losses.
Investors sought to limit exposures to downside risks as the
global economic outlook darkened on rising COVID-19 infections
in Europe as well as on uncertainties over U.S. presidential
elections.
Japan's Nikkei share average .N225 slipped 0.57% to
23,214.49, falling below a key support from its 25-day average
at 23,222.
The broader Topix .TOPX lost 0.53% to 1,635.46, led by
cyclicals such as steelmakers .ISTEL.T and carmakers
.ITEQP.T .
Steelmakers JFE Holdings 5411.T and Kobe Steel 5406.T
fell 4.7% and 3.6%, respectively. Among carmakers, Honda
7267.T lost 2.9% while truck maker Hino Motors 7205.T shed
2.4%.
Elsewhere, Sumitomo Mitsui Trust 8309.T dropped 2.8%, hit
by concerns about reputational damages after the Japanese
company made errors in vote-counting of shareholders' meetings
it administers. Investor caution was palpable with so-called quality stocks,
those with steadier earnings outlook, outperforming the overall
market, said Yuya Fukue, trader at Rheos Capital Works.
Among the quality stocks, endoscope maker Olympus 7733.T
gained 2.6% while optical products maker Hoya Corp 7741.T rose
1.7% and Sysmex 6869.T , a medical equipment firm, added 1.6%.
Still, Nikkei's losses were smaller than the 2.37% drop in
U.S. S&P500 .SPX , partly due to expectations of big
reinvestment flows from dividend next week.
"We have 800 billion yen ($7.59 billion) of reinvestment
expected. That is big," said Fukue at Rheos.
Shares of start-up companies were another bright spot, with
their Mothers Index .MTHR hitting a 2-1/2-year high.
Internet service firm Toyokumo 4058.T , listed in the
Mothers market on Thursday, was untraded with a glut of "buy"
orders.
Toyokumo's strong IPO debut lifted shares of software firm
Cybozu 4776.T , its parent company before a management buyout
and its second-biggest shareholder.
($1 = 105.41 yen)