Japan's Nikkei dragged lower by chip shares amid rising U.S. yields
26/09/2023 04:10
TOKYO, Sept 26 (Reuters) -
Japan's Nikkei share average fell on Tuesday dragged by
declines in heavyweight chip-related shares, but value stocks
limited losses as investors scooped those up to get the right to
dividend payouts.
The Nikkei index .N225 was down 0.91% to 32,379.85 by the
midday break.
"Growth shares weakened amid concern about rising U.S.
Treasury yields," said Takehiko Masuzawa, trading head at
Phillip Securities Japan.
"While gains in value stocks supported the market as
investors bought stocks with higher dividend payouts," he said.
Investors need to buy stocks by the next session to get the
right to dividend payouts for companies that count September as
the end of their half-year.
U.S. Treasury yields extended rises, hitting its highest
level since October 2007 in Asian trading, amid expectations the
U.S. Federal Reserve was likely to keep interest rates at higher
levels for longer than initially anticipated.
Chip-making equipment maker Tokyo Electron 8035.T slumped
3.44% to become the biggest drag for the Nikkei. Chip-testing
making equipment maker Advantest 6857.T lost 2.42%.
The broader Topix .TOPX was down 0.49% to 2,373.81, a
smaller slide than the Nikkei as investors bought value stocks
set to go ex-dividend in the next session.
Value shares, whose growth is slower, tend to pay higher
dividend to attract investors, while growth stocks tend to get
hurt by higher interest rates as their potential lies in future
cash flows.
Electronic machinery makers .IELEC.T lost 1.02% to become
the worst performing sector among 33 industry sub-indexes on the
Tokyo Stock Exchange. The transport sector .ITEQP.T lost
1.01%.
The insurance sector .IINSU.T rose 1.01% to become the top
performing sector and shipping firms .ISHIP.T gained 0.54%.
Japan Exchange Group 8697.T jumped 3.06% to become the top
performer on the Nikkei after the operator of the Tokyo Stock
Exchange raised an annual net profit forecast.
(Reporting by Junko Fujita; Editing by Nivedita Bhattacharjee)
((junko.fujita@thomsonreuters.com;))