Asian Markets Update: Tokyo Markets Quietly Close Lower

TOKYO -- Japanese shares closed lower as futures traders shuffled positions ahead of the settlement of September futures and options contracts on Friday. However, with most cash stock buyers out of the market until the volatility in futures trading subsides, the market was relatively quiet.

The Nikkei 225 index shed 235.94, or 1.4%, to close at 16,452.27, while the Topix index, which includes all shares listed on the Tokyo Stock Exchange's first section, lost 11.36 to finish at 1491.04. The Jasdaq small-cap index fell 1.37, or 1.7%, to end the day at 81.01, while the Nikkei over-the-counter market lost 16.54, or 1.0%, to close at 1704.91.

Traders reckon trading in the futures market will dominate until Thursday, as players adjust positions before derivatives contracts expire, which is dubbed the settlement of special quotations. September Nikkei 225 futures fell 340.00 to 16,400, while September Topix futures fell 16.00 to 1485. ...