Techs had been leading Tokyo's recent advance along with banks. Even though growth potential is bright for high-techs, they are not free from profit-taking now and then.
The merger itself is a positive factor but pretty much priced in already, and some are now questioning what exactly the banks aim to do through the merger, besides becoming bigger in size.
The Nasdaq ended mostly unchanged last Friday, and some investors bet it was a good chance to hunt for bargains.
Sentiment has not weakened significantly, and there's plenty of demand out there for stocks like Teijin.
This may be good for Asahi, but it doesn't change weak economic fundamentals and the fact that no viable policy concerning the sour-loan dilemma has emerged from the government.
Although few of us expect rate hikes this time around, market players still want to play it safe and wait until the verdict.
(The strong) yen is responsible for today's decline. Electronics shares, for example, would have performed much better without it.
Some of the Kmart issue was worked in during the previous session. The data out of the U.S. still points to an economic recovery.
