Nikkei falls on strong yen; U.S. presidential debate in focus

domingo 25 de septiembre de 2016 22:47 GYT

* Exporters fall on stronger yen

* Drugmakers, food manufacturers outperform

By Ayai Tomisawa

TOKYO, Sept 26 (Reuters) - Japan's Nikkei share average dropped on Monday morning, with sentiment soured by a strong yen and weakness on Wall Street, while investors turned their focus to the U.S. presidential debate.

The Nikkei fell 0.5 percent to 16,674.67 in mid-morning trade.

Traders said that most investors would be on the sidelines awaiting Monday evening's (0100 GMT on Tuesday) U.S. presidential debate between Donald Trump and Hillary Clinton.

"There won't likely be any outcome affecting the Japanese market directly, but investors are watching how the currency markets will move. Anything triggering fears for a strong yen trend is negative to stocks," said Takuya Takahashi, a strategist at Daiwa Securities.

"If the popularity of Trump rises, uncertainty would be bigger to U.S. shares and the global financial market. But Clinton's policies would not be particularly positive to Japanese stocks, either."

Takahashi also noted that the ratification of the Trans-Pacific Partnership (TPP) pact - a trade agreement among 12 Pacific Rim countries including Japan - would be challenging, as both Clinton and Trump are opposed to the pact. It would be a positive catalyst for Japanese equities if ratified.   Continuación...