Japan's Nikkei ends lower as chip shares fall amid rising US yields

Japan Exchange

26/09/2023 07:43

TOKYO, Sept 26 (Reuters) - Japan's Nikkei share average
ended more than 1% lower on Tuesday, dragged by declines in
heavyweight chip-related shares, but losses were limited as
investors bought value stocks for dividend payout rights.
        The Nikkei index  .N225  closed down 1.11% at 32,315.05.
 
    "Growth shares weakened amid concern about rising U.S.
Treasury yields," said Takehiko Masuzawa, trading head at
Phillip Securities Japan.
    U.S. Treasury yields extended rises, hitting their highest
levels since October 2007 in Asian trading on expectations of
the U.S. Federal Reserve likely keeping interest rates at higher
levels for longer than initially anticipated.
    Chip-making equipment maker Tokyo Electron  8035.T  slumped
3.7% to become the Nikkei's biggest drag. Chip-testing equipment
maker Advantest  6857.T  lost 2.24%.
    The broader Topix  .TOPX  fell 0.57% to 2,371.94, a smaller
slide than the Nikkei as investors bought value stocks set to go
ex-dividend.
    Investors need to buy stocks by the next session to get
dividend payout rights for companies that count September as the
end of their half-year.  
    "While gains in value stocks supported the market as
investors bought stocks with higher dividend payouts," Masuzawa
said.
    Value shares see slower growth but tend to pay higher
dividends to attract investors, while growth stocks tend to get
hurt by higher interest rates as their potential lies in future
cash flows.
    The drug sector  .IPHAM.T  lost 1.35% to become the
worst-performing sector among 33 industry sub-indexes on the
Tokyo Stock Exchange. 
    Machinery makers  .IMCHN.T  slipped 1.22% and electronic
machinery makers  .IELEC.T  lost 1.18%.
    Shipping firms  .ISHIP.T  gained 1.62% to become the top
performer among the industry groups, while the banking sector
 .IBNKS.T  gained 1.13% and the insurance sector  .IINSU.T  rose
1.08%.
    Japan Exchange Group  8697.T  rose 2.39% after the operator
of the Tokyo Stock Exchange raised an annual net profit
forecast.
    

 (Reporting by Junko Fujita; Editing by Nivedita Bhattacharjee
and Janane Venkatraman)
 ((junko.fujita@thomsonreuters.com;))