TOKYO -- Japanese stock trading is typically thin in August. Thus, the Bank of Japan's purchases of exchange-traded funds may exert a disproportionately large and potentially unwelcome influence on the Tokyo stock market this month, observers say.
The Nikkei Stock Average closed at 16,735, down 29 points on Wednesday. At one point, the benchmark average dropped as much as 107 points, but shares came off their lows as investors bet the central bank may buy ETFs for the first time since Aug. 4.
