Nikkei ends higher on boost from ex-dividend stocks

  • Reuters
  • Stock Market News
Nikkei ends higher on boost from ex-dividend stocks
Credit: © Reuters.

TOKYO, Sept 28 (Reuters) - Japanese shares closed higher on Monday following bigger appetite for stocks that were set to go ex-dividend this week, although gains were capped due to U.S.-Sino tensions.

The benchmark Nikkei share average .N225 rose 1.32% to 23,511.62 and the broader Topix .TOPX gained 1.69% to 1,661.93. All but two of the 33 sector sub-indexes on the Tokyo exchange traded higher.

Investors took cues from Wall Street's positive finish on Friday when main indexes gained more than 1%, while in Japan, analysts cited demand for index futures by index and mutual funds lifting sentiment a day before the ex-dividend date. .N

But U.S.-China tensions capped gains after reports the U.S. had sent letters informing companies that suppliers of certain equipment to China's Semiconductor Manufacturing International Corporation 0981.HK must apply for individual export licenses. the tech-related dispute between the two nations, chipmaker Kioxia Holdings Corp 6600.T postponed plans for what would have been Japan's largest initial public offering this year. triggered a sell-off in Toshiba Corp 6502.T stocks, which had intended to return most of the IPO proceeds to shareholders, dropping more than 8% in early session before retracing some losses to trade 3.23% lower.

"It has become clear that the U.S. restrictions on China have affected various companies in the semi-conductor industry... but the magnitude of the effect will differ from companies to companies," said Takashi Hiroki, chief strategist at Monex Securities.

Other semi-conductor shares also declined. Tokyo Electron 8035.T and Advantest Corp 6857.T slid 1.75% each.

Stocks that outperformed included Nitori Holdings 9843.T , which edged 0.56% higher after the interior goods company announced upward revisions to earnings forecasts. the Mothers Index .MTHR of start-up firm shares fell 1.62%.

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