Japan's stock market braces for $7bn-plus ETF-linked sell-off

Securities expected to be sold to cover dividend payouts to shareholders

20240704N Japan Stock Ticker REUTERS

Japanese ETFs are slated to sell more than $7 billion in securities on July 8 and July 10. © Reuters

YUKA KAWAI, Nikkei staff writer

TOKYO -- Japan's equities market is closely watching an expected sell-off by exchange-traded funds next week to the tune of billions of dollars.

To raise funds to pay dividends to shareholders, ETFs need to sell shares and futures on the days they settle accounts. The upcoming sales are slated for Monday and Wednesday.

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