Nikkei touches 8-month high as strong chip investment lifts tech shares

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Rocky Swift TOKYO, April 25 (Reuters) - Japanese stocks climbed on Tuesday, with the Nikkei index touching the highest levels in eight months, led by electronics makers as investors assessed an optimism in corporate earnings recovery and upbeat chip investment. The Nikkei advanced for a second straight session, rising 0.39% to 28,706.04 by the morning break. Earlier in the session, the index reached 28,806.69, its highest since Aug. 19, 2022. The broader Topix rose 0.56% to 2,048.76. Mitsubishi Electric Corp jumped 4.63%, leading Nikkei gainers, after the company said it would spin-off its automotive audio business. Shares of motor maker Nidec Corp climbed 3.16% as a rosy full-year profit estimate overshadowed a quarterly loss reported on Monday.


"The company has announced a V-shaped recovery in its operating income forecast," Nomura Securities strategist Kazuo Kamitani said about Nidec. "It appears that the market today is taking guidance from those results." Tech shares are in focus amid a slate of major U.S. companies due to report earnings this week, including Amazon.com Inc and Google operator Alphabet Inc. Semiconductor stocks were buoyed after Industry Minister Yasutoshi Nishimura said the government plans to give additional subsidies to chipmaker Rapidus, which plans to build a cutting-edge factory in Japan's northern major island of Hokkaido. Chip-making equipment giant Tokyo Electron Ltd added 1.01% while testing equipment manufacturer Advantest Corp climbed 1.78%. Daiwa House Industry Co jumped 3.12% after the homebuilder raised its profit forecast for the just-ended fiscal year. There were 150 gainers in the Nikkei against the 67 that lost ground. Securities companies were the top performers among the Tokyo Stock Exchange's 33 industry sectors, rising 1.57%. Utilities and steelmakers were the biggest decliners. Tokyo Gas Co slid 1.53% while Kobe Steel Ltd dropped 1.65%.
(Reporting by Rocky Swift; Editing by Sherry Jacob-Phillips)

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