Tokyo stocks climbed sharply on Monday as a rally in US chip stocks and the bullishness of last week’s Tankan business confidence survey continued to cheer investors.
The Nikkei 225 average ended up 2.7 per cent at 11,279.63 while the Topix index gained 2 per cent to 1,139.45.
Semiconductor-related stocks posted big gains in response to a sector rally in New York on Friday, with chip production equipment maker Advantest climbing 6.3 per cent to Y7,050 and Tokyo Electron up 3.7 per cent at Y5,660.
Among chip makers, NEC climbed 2.6 per cent to Y675, Toshiba rose 5.7 per cent and Fujitsu was up 3.9 per cent at Y666. Kyocera, a maker of ceramics for chip casing, gained 5 per cent to Y8,270.
Gains were broad based, with all but one of 33 sector indices rising, as the market continued to digest the Tankan’s revelation that business sentiment had hit a new 13-year high despite an economic slowdown.
Aeon, a leading retailer, climbed 3 per cent to Y1,821 after the group said it would open more discount “supercentres” from 2006 as the popularity of existing stores continued to grow.
Sharp, the world’s largest maker of liquid crystal display panels, climbed 5.6 per cent to Y1,596 as investors expected good news from a briefing the group said it would hold after the market close on its earnings outlook.
Yoshinoya D&C, a fast food chain operator, fell 1.2 per cent after the company widened its loss forecast for the fiscal year to a net Y2.5bn, reflecting the disruptive effects of a ban on US beef imports.
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