Japan Stocks Gain as Dividend Investors Temper Europe
Japanese stocks advanced as investors bought shares ahead of deadline for dividend payments. Gains were limited on concerns that Europe isn’t making progress on resolving its sovereign debt crisis.
Nitto Denko Corp., one of more than 900 companies on the Topix Index that will trade without rights to a dividend from tomorrow, increased 3.3 percent. Suzuki Motor Corp. (7269) climbed 4.9 percent on a report an Indian unit may increase car prices. Brother Industries Ltd. (6448), a maker of office equipment that relies on Europe for 28 percent of its sales, slid 1 percent after German business confidence unexpectedly fell.
The Nikkei 225 Stock Average (NKY) rose 0.3 percent to 9,091.54 at the 3 p.m. close in Tokyo, after falling as much as 0.5 percent earlier today. Volume on the gauge was more than 20 percent above the 30-day average for the time of day. The broader Topix Index gained 0.5 percent to 757.66, with three shares advancing for each that fell.
“Today is the last day to have rights to receive dividends as of the end of September, so investors are inclined to buy shares after prices declined,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “What happens from now on is the deteriorating German confidence will spread to the real economy, and the euro region’s economy will contract.”
To contact the editor responsible for this story: Nick Gentle at email@example.com