Japan shares track Wall Street gains as chip sector rallies
Japan's chip sector drove gains with Tokyo Electron climbing 3.0% and Disco Corp up 1.6%.
Japanese stocks hit their highest in more than a week on Tuesday, with the semiconductor sector tracking Wall Street gains, though trading remained thin ahead of the domestic earnings season.
The benchmark Nikkei share average rose 1.0 per cent to 21,620.88, its highest close since July 12.
On Wall Street overnight, S&P 500 climbed 0.3 per cent, a shade below its July 15 record high close, while the Dow Jones Industrial Average rose 0.1 per cent and the Nasdaq Composite added 0.7 per cent.
Chip stocks gained globally on news US President Donald Trump agreed with top technology heads to make "timely" decisions on whether US companies could sell goods to China's Huawei Technologies.
Taking their cues from Wall Street peers, Japan's chip sector drove gains with Tokyo Electron climbing 3.0 per cent and Disco Corp up 1.6 per cent.
Japanese semiconductor shares are highly correlated with the US Philadelphia chip index, which rose 2.0 per cent.
"Everyone knows the upcoming earnings season will be anything but rosy," said Toru Ibayashi, head of Japanese equities at UBS Wealth Management in Tokyo.
"But Taiwanese TSMC's optimistic tone on chip demand, coupled with Goldman Sachs' rating hike, raised investors' hopes that commodity chips are bottoming out."
On Thursday, Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker and supplier to Apple Inc , said demand was likely to recover over the rest of the year.
Apple components makers were also in demand after the Wall Street Journal reported that Apple Inc was in advanced talks to buy chipmaker Intel Corp's smartphone-modem chip business, citing sources.
Murata Manufacturing Co, TDK Corp and Alps Alpine Co advanced 2.5 per cent, 2.2 per cent and 2.3 per cent, respectively.
Nikkei heavyweight SoftBank Group Corp jumped 4.0 per cent after Fox Business reported US regulators would approve the postponed $26 billion merger between T-Mobile US Inc and Sprint Corp.
Elsewhere, Akebono Brake Industry Co extended its stellar gains for the fourth consecutive trading day, surging 4.9 per cent, on continued hopes for restructuring of the troubled car parts maker's money-losing business.
The broader Topix added 0.8 per cent to 1.568.82. Turnover on the Tokyo Stock Exchange's main board was subdued at 1.66 trillion yen ($15.4 billion) versus the daily average of 2.34 trillion yen over the past year.
Japan's June quarter corporate earnings season kicks off with Canon Inc, Nidec Corp and Shin-Etsu Chemical Co announcing results after the market close on Wednesday.
The benchmark Nikkei share average rose 1.0 per cent to 21,620.88, its highest close since July 12.
On Wall Street overnight, S&P 500 climbed 0.3 per cent, a shade below its July 15 record high close, while the Dow Jones Industrial Average rose 0.1 per cent and the Nasdaq Composite added 0.7 per cent.
Chip stocks gained globally on news US President Donald Trump agreed with top technology heads to make "timely" decisions on whether US companies could sell goods to China's Huawei Technologies.
Taking their cues from Wall Street peers, Japan's chip sector drove gains with Tokyo Electron climbing 3.0 per cent and Disco Corp up 1.6 per cent.
Japanese semiconductor shares are highly correlated with the US Philadelphia chip index, which rose 2.0 per cent.
"Everyone knows the upcoming earnings season will be anything but rosy," said Toru Ibayashi, head of Japanese equities at UBS Wealth Management in Tokyo.
"But Taiwanese TSMC's optimistic tone on chip demand, coupled with Goldman Sachs' rating hike, raised investors' hopes that commodity chips are bottoming out."
On Thursday, Taiwan Semiconductor Manufacturing Co (TSMC), the world's largest contract chipmaker and supplier to Apple Inc , said demand was likely to recover over the rest of the year.
Apple components makers were also in demand after the Wall Street Journal reported that Apple Inc was in advanced talks to buy chipmaker Intel Corp's smartphone-modem chip business, citing sources.
Murata Manufacturing Co, TDK Corp and Alps Alpine Co advanced 2.5 per cent, 2.2 per cent and 2.3 per cent, respectively.
Nikkei heavyweight SoftBank Group Corp jumped 4.0 per cent after Fox Business reported US regulators would approve the postponed $26 billion merger between T-Mobile US Inc and Sprint Corp.
Elsewhere, Akebono Brake Industry Co extended its stellar gains for the fourth consecutive trading day, surging 4.9 per cent, on continued hopes for restructuring of the troubled car parts maker's money-losing business.
The broader Topix added 0.8 per cent to 1.568.82. Turnover on the Tokyo Stock Exchange's main board was subdued at 1.66 trillion yen ($15.4 billion) versus the daily average of 2.34 trillion yen over the past year.
Japan's June quarter corporate earnings season kicks off with Canon Inc, Nidec Corp and Shin-Etsu Chemical Co announcing results after the market close on Wednesday.