Nikkei falls as strong yen trend sours sentiment, ex-div adjustment adds to pressure
* Banks, insurance companies tumble
* Strong yen trend increases exporter earnings worries
By Ayai Tomisawa
TOKYO, Sept 28 (Reuters) - Japan's Nikkei share average fell on Wednesday morning as a strong yen continued to sour sentiment, while ex-dividend share price adjustments pressured the market.
The Nikkei dropped 1.8 percent, or 295.32 points, to 16,388.61 at midmorning trade. About 115-120 points are cut from the Nikkei by the ex-dividend price adjustment, according to market participants.
With the dollar trading below 105 yen for about two months, investors are increasingly worried about Japanese exporters' earnings, traders said.
Most automakers have calculated their earnings forecasts on the assumption that the dollar would trade at 105 yen, and most electronics makers expect the dollar to trade at 110 yen, according to brokerages.
"By looking at the current dollar-yen levels, companies will likely have no choice but to lower their dollar-yen assumptions at their mid-year earnings releases," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.
On Wednesday morning, the dollar was at 100.470 yen. Continuación...