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Japan's Nikkei rises as chip stocks track Wall Street bounce
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Japan's Nikkei rises as chip stocks track Wall Street bounce
Dec 2, 2024 7:04 PM

TOKYO, Dec 3 (Reuters) - Japan's Nikkei share average

rose on Tuesday as semiconductor-related shares climbed on the

back of a strong overnight performance by their U.S. peers on

Wall Street.

The Nikkei was up 1.7% at 39,183.16, as of 0209 GMT,

while the broader Topix climbed 1.3%.

The Nasdaq and the S&P 500 indexes scored record closing

highs on Monday, boosted by tech-related shares following the

market's strong November gains. The Philadelphia SE

Semiconductor Index added 2.6%.

Japan's major technology shares followed suit, with shares

of chip-making equipment giant Tokyo Electron ( TOELF ) up 4.1%,

contributing 95 points to the Nikkei's nearly 671-point gain.

AI-focused startup investor SoftBank Group rose

3.7% and chip-testing equipment maker Advantest ( ADTTF ) gained

3%.

Shares of fellow chip-related firm Disco Corp ( DISPF )

surged nearly 7%, while peer Screen Holdings ( DINRF ) was up

5.4% to land them among the Nikkei's best performers by

percentage. Lasertec ( LSRCF ) was up 5.5%.

Gains were broad across the Nikkei's 225 constituents as

investor sentiment improved, with 192 shares advancing and 30

declining, while three shares remained untraded.

"Last week, Japan's stock market saw caution about news

related to tariff increases under the incoming Trump

administration," said Maki Sawada, a strategist at Nomura

Securities.

Losses were concentrated among economically sensitive

sectors, she said, adding that this week though investors appear

to be buying back those shares.

Shipping and electric machinery, both

considered to be cyclical sectors, were among top performers on

the Tokyo Stock Exchange's 33 industry sectors.

Shipper Kawasaki Kisen Kaisha ( KAKKF ) advanced 5.4%.

Among other major shares on Tuesday, Uniqlo parent firm Fast

Retailing ( FRCOF ) rose 1.8% to add support to the overall

index, and semiconductor silicon wafer maker Shin-Etsu Chemical ( SHECF )

added 2.2%.

Automakers Toyota Motor ( TM ) and Honda Motor ( HMC )

gained 1.3% and 1.4%, respectively.

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