All three major U.S. stock indexes closed nominally lower on Friday after a five-session rally.
In Japan, chip-related heavyweights fell, with Advantest and Tokyo Electron losing 2.3% and 0.29% respectively.
Air conditioning manufacturer Daikin Industries fell 2.02%.
The Nikkei fell as some major stocks with higher dividend payouts went ex-dividend, said Seiichi Suzuki, chief stock market analyst at Tokai Tokyo Research Institute.
Japan Tobacco fell 1.6%, while tire manufacturer Bridgestone fell 1.23%. Their financial year ends in December. The Topix rubber producers index fell 1.4% to become the worst performing among the sector’s 33 sub-indexes.
Banks rose as the Bank of Japan’s summary of advice showed policymakers debating the need to keep raising rates even after December’s rate hike.
Mitsubishi UFJ Financial Group gained 0.44%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group rose 0.39% and 0.71%, respectively.
The Topix value stock index rose 0.36%, while the growth stock index fell 0.18%.
Value stocks, which pay higher dividends than growth stocks, tend to rise in January as retail investors buy these stocks at the beginning of the year to include in their Nippon Individual Savings Account (NISA) program, Suzuki said.
The NISA is expanding because it exempts private investors from paying capital gains tax on shareholdings.
Of the more than 1,600 stocks trading on the main market of the Tokyo Stock Exchange, 61% rose, 34% fell and 2% were flat.
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