TOKYO, Sept 27 (Reuters) - Japan's Nikkei share average closed higher on Wednesday, rebounding from a one-month low as investors scooped up stocks to secure rights for dividend payouts which expire after the session.
The Nikkei closed 0.18% higher at 32,371.90 after falling to 31,960.32, its lowest level since Aug. 28.
The broader Topix rose 0.32% to 2,379.53.
"The market tracked Wall Street's declines earlier in the session but investors bought shares to get rights for dividend payouts, which pushed the market higher," said Shigetoshi Kamada, general manager at the research department at Tachibana Securities.
Investors needed to buy stocks by the end of the current session to get dividend payout rights for companies that count September as the end of their half-year.
In recent sessions, investors bought so-called value shares, which pay higher dividends as their growth is slow.
The Topix value share index has gained 5.4% so far this month, outperforming a 1.62% fall in the Topix growth share index.
"Overall Japanese stocks are buy because of the Bank of Japan's ultra-low rate policy. Also the government is putting together a stimulus package to stir the economy."
Wall Street's main indexes fell more than 1% overnight as 10-year Treasury yields held on to multi-year highs, with investors still wrestling with prospects of higher-for-longer interest rates the economic fallout.
U.S. Treasury yields eased during the Asian trading, while the 10-year Japanese government bond yield was flat, easing investor sentiment.
Chip-testing equipment maker Advantest gave up early losses to end 1.74% higher, becoming the biggest boost to the Nikkei.
Drugmakers Chugai Pharmaceutical and Daiichi Sankyo rose 4.07% and 3.52%, respectively.
The drug sector rose 1.72% to become the best performer among the 33 industry sub-indexes on the Tokyo Stock Exchange.
Uniqlo-brand owner Fast Retailing fell 1.52% to weigh on the Nikkei the most. (Reporting by Junko Fujita; Editing by Subhranshu Sahu and Varun H K)