Nikkei ends higher on boost from ex-dividend stocks

SumCo

28/09/2020 08:04

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.
 urn:newsml:reuters.com:*:nL8N2GN07T
    Amid 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.  urn:newsml:reuters.com:*:nL4N2GO0UV
    This 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.  urn:newsml:reuters.com:*:nXB07RUKBW
    Elsewhere, the Mothers Index  .MTHR  of start-up firm shares
fell 1.62%.

 (Reporting by Eimi Yamamitsu; editing by Uttaresh.V)
 ((eimi.yamamitsu@thomsonreuters.com;))