By Stanley White
TOKYO, Jan 8 (Reuters) - Japanese stocks surged on Friday to a 30-year peak as optimism about further fiscal stimulus under incoming U.S. President Joe Biden and an improving outlook for semiconductor demand boosted investor appetite for riskier assets.
The Nikkei 225 Index .N225 was up 1.49% at 27,900.64 by 0200 GMT. The benchmark index surged to the highest since August 1990 shortly after the opening bell, with technology, raw materials, and banking shares leading the advance.
The broader Topix .TOPX rose 0.89% to 1,842.67, reaching the highest since February 2018.
Sentiment for global equities got a major boost this week after Biden's Democrats won control of the U.S. Senate in runoff elections, which will make it easier for his government to use big fiscal spending to stimulate the economy. addition, the outlook for the tech sector has brightened considerably after semiconductor makers Samsung Electronics Co Ltd 005930.KS and Micron Technology Inc MU.O forecast robust profit and revenue. should expect more fiscal spending and more deficits under Biden," said Masayuki Kichikawa, chief macro strategist at Sumitomo Mitsui Asset Management Co.
"We have a reflationary trade, because we have a weak dollar, stronger equities, higher long-term yields, and higher commodity prices."
The Topix index for electric machinery makers .IELEC.T , which includes many semiconductor-related shares, rose 1.94% to the highest since May 2000.
There were 162 advancers in the Nikkei index against 56 decliners.
The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.58 billion, compared with the average of 1.19 billion in the past 30 days.
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