Business / Financial Markets | TSE DATA & REPORT

Tokyo stocks rebound on chip-sector strength

JIJI

Stocks bounced back on the Tokyo Stock Exchange on Tuesday, supported by hefty buying of semiconductor-related issues.

The 225-issue Nikkei average rose 204.09 points, or 0.95 percent, to end at 21,620.88, after falling 50.20 points on Monday.

The Topix index of all first-section issues was up 12.45 points, or 0.80 percent, at 1,568.82. It lost 7.59 points the previous day.

Investment appetite for chip-related firms grew after their U.S. peers fared well overnight after Goldman Sachs raised its ratings for chipmakers including Applied Materials Inc. and Micron Technology Inc., brokers said.

U.S. President Donald Trump’s agreement to make timely decisions on requests by U.S. firms to sell their products to Chinese telecommunications giant Huawei Technologies Co. relieved concerns over trade tensions between the world’s two largest economies, brokers said.

The investment rating upgrades and Trump’s agreement raised “expectations for an upturn in the chip sector,” said Hirohumi Yamamoto, strategist at Toyo Securities Co.

The development surrounding Huawei was “positive not just for the chip sector but for the overall market” because Washington’s ban on the company was “emblematic of U.S.-China trade tensions,” another brokerage official said.

A stable yen against the dollar also lifted investor sentiment, brokers said.

Rising issues outnumbered falling ones 1,640 to 422 in the TSE’s first section, while 88 issues were unchanged.

Volume increased to 919 million shares from 905 million shares on Monday.

Among semiconductor-related issues, Tokyo Electron gained 3.04 percent, Disco rose 1.62 percent, and Sumco climbed 1.29 percent.

Oil issues rose thanks to higher crude oil prices; among them were Inpex, JXTG and Idemitsu.

Akebono Brake extended its winning streak to a fourth session on hopes for the auto parts maker’s turnaround, brokers said.

Among other winners were technology investor SoftBank Group and industrial robot producer Fanuc.

Japan Post fell 0.09 percent, dropping for the ninth consecutive session.

Also on the negative side were clothing store chain Fast Retailing and Takeda Pharmaceutical.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average rose 240 points to end at 21,600.

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