Nikkei Ends Higher on Boost From Ex-Dividend Stocks

Japanese stocks closed higher on Monday, September 28, in light of greater demand for stocks whose cash dividends are due to expire this week, but US-Chinese tensions limited the gains.

The Nikkei rose 1.32% to 2,3511.62 points, while the broader TOPIX index gained 1.69% to 1,661.93 points. All sub-sector indices rose in the Tokyo Stock Exchange, except for two.

Investors tracked a positive close on Wall Street on Friday when major indexes gained more than 1%. In Japan, analysts attributed improved sentiment to mutual funds and index funds’ demand for index futures a day before the right to dividends expires.

However, US-Chinese tensions limited the gains after reports that the United States sent letters informing companies that supply specific equipment to the International Chinese Semiconductor Manufacturing Company that they must file export license applications separately.

Semiconductor companies Tokyo Electron and Advantest Corp slipped 1.75% each.

Among the companies that starred, Network Holdings rose 0.56% after the household goods company announced to revise its profit forecasts upwards.