Dividend-buying cushions Nikkei, but index ends lower on Iran war fears
By Satoshi Sugiyama
TOKYO, March 27 (Reuters) - Japan's Nikkei share average pared some of its earlier losses but still ended slightly lower on Friday, as dividend-buying only partially offset the drag from concerns over the U.S.-Israeli war with Iran.
The Nikkei .N225 eased 0.4% to close at 53,373.07, after sliding as much as 2% earlier in the session, and snapped a three-week losing run to finish this week little changed.
The broader Topix .TOPX firmed 0.2% to 3,649.69.
"This is a period when buying tends to come in easily from a supply-demand perspective as today is the last trading day to capture dividend rights," said Tomoichiro Kubota, senior market analyst at Matsui Securities.
Some investors are also hoping that U.S. President Donald Trump will ease pressure on Iran after the Nasdaq confirmed correction territory and the yield on the 10-year U.S. Treasury rose to 4.4%, Kubota added.
Japan remains highly exposed to spikes in crude oil prices due to its heavy reliance on imported energy. The closure of the Strait of Hormuz weighs heavily on the country that gets roughly 90% of its oil shipments via the vital chokepoint.
Meanwhile, Trump said he will extend the deadline to April 6 for Iran to make a deal to end the war or face the destruction of its energy plants, saying talks were going "very well."
Tehran, however, dismissed Washington's proposal to end the conflict as "one-sided and unfair," clouding prospects for de-escalation.
On the Nikkei index, 148 stocks advanced and 76 declined.
The benchmark's biggest percentage gainers were medical endoscopes and optics company Olympus 7733.T, which climbed 6.8%, followed by Sumitomo Pharma 4506.T, which added 6.6%.
On the flip side, automaker Hino Motors fell 5.4%, followed by air-conditioning systems leader Daikin Industries 6367.T, which lost 5.2%.
Chip component maker Rohm 6963.T shed 4.1% and Mitsubishi Electric 6503.T dipped 2.2% after the Nikkei reported the two firms and Toshiba would begin talks to integrate their power semiconductor businesses to form what would become the world's second-largest power chip group.
