Japanese stocks rose Wednesday as high-tech shares climbed on hopes for improvement in the chip sector after U.S. giant Intel Corp. posted strong first quarter results.
The benchmark Nikkei 225 stock index rose 1.2 percent to 13,146.13. The broader Topix index of all issues on the Tokyo exchange's first section gained 1.3 percent to 1,271.88.
"It's too early to buy Japanese chip shares aggressively before their earnings results next week, but sentiment was elevated by the Intel news," said Naoki Fujiwara, fund manager at Shinkin Asset Management.
Intel posted better-than-expected earnings for the first quarter and forecasts stronger-than-expected revenue of US$9 billion to US$9.6 billion (euro5.7 billion to euro6.1 billion) in the second quarter, usually its weakest sales period. The company's results eased concerns about other tech companies' earnings, including International Business Machines Corp., which reports its results later in the global day.
Still, the broader market is not in the clear yet.
Analysts said investors may stay on the sidelines until major U.S. banks including Citigroup Inc. release their earnings later this week.
Chip equipment makers rallied on the Intel news, with Tokyo Electron Ltd. rising 5.2 percent to 6,300 yen. Ibiden jumped 10 percent to 4,460 yen and Shinko Electric Industries Co. climbed 9.9 percent to 1,330 yen.
Other high-tech shares also gained on the revived sentiment. Sony Corp. added 3.5 percent to 4,190 yen, Canon Inc. gained 2.6 percent to 4,710 yen and Advantest Corp. advanced 3.6 percent to 2,840 yen.
Real estate shares gained on buying by foreign investors. Mitsui Fudosan Co. rose 4.9 percent to 2,355 yen. Sumitomo Realty & Development Co. gained 6.7 percent to 2,165 yen.
Electric Power Development Co., or J-Power, rose 1.1 percent to 3,600 yen, shrugging off local reports that the Japanese government will likely reject plans by the U.K.'s The Children's Investment Fund to raise its stake in the company.
Terms & Conditions
RSS Headlines
Fool UK