Nikkei ends higher on boost from ex-dividend stocks

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.
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. 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. Elsewhere, the Mothers Index .MTHR of start-up firm shares
fell 1.62%.