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Wild swings knock Japan's Nikkei, Topix off multi-decade peaks

Wild swings knock Japan's Nikkei, Topix off multi-decade peaks
From Reuters - November 8, 2017

* Sharp intraday moves linked to Fridays options settlement

* TSE first section volume highest in three years

TOKYO, Nov 9 (Reuters) - Japanese shares ended down on Thursday after dramatic intraday swings took the Nikkei and Topix indexes to multi-decade highs only to plunge in the afternoon on futures-driven trading ahead of the following days options settlement.

In the morning session, the Topix notched a 26-year high and the Nikkei share average broke the 23,000 level for the first time since January 1992, as financial and securities shares rallied.

But when the dust settled, the Nikkei ended down 0.2 percent at 22,868.71, after tumbling from a morning high of 23,382.15 to an afternoon session low of 22,522.83, its biggest one-day move since the election of U.S. President Donald Trump one year ago.

The Topix ended down 0.3 percent at 1,813.11, after soaring as high as 1,844.05 in the morning and skidding as low as 1,791.12 in the afternoon.

Turnover on the Tokyo Stock Exchanges first section came to 4.9935 trillio n yen, its highest since Nov. 4, 2014.

TSE first section volume came to 2.748 billion shares, its highest since Dec. 12.

The closely watched options settlement price, known in Japan as the special quotation, or SQ, is calculated from the opening prices of the 225 shares in the Nikkei average on the second Friday of every month.

There was no special news that triggered this afternoons volatile moves, said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. It was massive position adjustment ahead of tomorrows SQ.

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