By Stanley White
TOKYO, Oct 24 (Reuters) - Japan's Nikkei index rallied to its highest level in more than a year on Thursday, as investors bought back recently beaten down semiconductor-related shares on optimism for improved corporate earnings.
The Nikkei benchmark share average .N225 ended up 0.55% at 22,750.60. It earlier rose to 22,780.99, the highest since Oct. 18, 2018. So far it is up 13% for the year.
Shares rose for the fourth consecutive trading session as investors who recently sold off Japanese technology stocks turned into bargain hunters following Microsoft Corp's MSFT.O higher-than-expected sales forecasts for its cloud computing services. slightly weaker yen, which tends to boost earnings repatriated from overseas, also supported share prices of Japan's major exporters.
"We're in the age of big data and artificial intelligence, and both require semiconductors," said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.
"I don't see how you can argue that future demand for semiconductors will weaken. Japanese stocks can gain another 10% to 20% from current levels."
There were 166 advancers on the Nikkei index against 51 decliners on Thursday.
The information and technology sector was the biggest gainer, rising 0.25%. Chip-making equipment manufacturer Tokyo Electron Ltd 8035.T rose 2.18%, while electronic devices maker Kyocera Corp 6971.T gained 1.13%.
The largest percentage gainers in the index were pharmaceutical company Eisai Co Ltd 4523.T up 15.3%, followed by parcel delivery firm Yamato Holdings Co Ltd 9064.T gaining 4.06%, and Hino Motors Ltd 7205.T up by 3.75%.
Eisai's shares have gained rapidly since it agreed with its U.S. partner Biogen Inc BIIB.O on Tuesday to revive plans to seek U.S. approval for an Alzheimer's treatment. largest percentage losses in the index were materials maker Toray Industries Inc 3402.T down 4.35%, followed by SoftBank Group Corp 9984.T losing 2.94%, and property developer Tokyu Fudosan Holdings Corp 3289.T down by 2.59%.
Softbank's shares hit their lowest since Jan. 30 on Thursday on continued worries that its finances will weaken due to its bailout of office-space sharing startup WeWork. broader Topix index .TOPX rose 0.34% to 1,643.74.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 1.2 billion, compared with the average of 1.24 billion in the past 30 days. (Editing by Jacqueline Wong & Shri Navaratnam)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.