Japan Stocks Advance on Strong Semiconductor Shares, Stable Yen
Japanese stocks headed for a three-day advance as stability in the yen supported exporters while higher chip-related shares overseas gave a boost to their peers in Tokyo.
Topix rose 0.5% to 2,799.16 as of 9:02 a.m. Tokyo time
Nikkei 225 advanced 0.7% to 38,345.34
Sony Group contributed the most to the Topix’s gain, increasing 1.2%. Out of 1,684 stocks in the index, 1,197 rose and 351 fell, while 136 were unchanged.
The Philadelphia Semiconductor Stock Index, or SOX, climbed almost 2% overnight, lifting tech names such as Tokyo Electron and Advantest. Automakers including Toyota Motor and Honda Motor gained as the yen remained steady at 144.57 per dollar
“The rise in US semiconductor stocks is being buoyed by strong 12-month profit growth, which will be a tailwind for Japanese semiconductor-related shares,” said Hideyuki Ishiguro, chief strategist at Nomura Asset Management. “Buying of large-cap stocks, believed to be by overseas investors, continues, with economically sensitive stocks likely to be bought as well.”
Some investors may be on the sidelines as they wait to see how US-China trade talks play out, Ishiguro added. The talks will continue into a second day, according to a US official, as the two sides look to ease tensions over shipments of technology and rare earth elements.
Source : Bloomberg
