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Japan's Nikkei rises more than 2% as chip heavyweights advance
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Japan's Nikkei rises more than 2% as chip heavyweights advance
Sep 25, 2024 11:15 PM

TOKYO, Sept 26 (Reuters) - Japan's Nikkei share average

rose more than 2% on Thursday, as chip giants Tokyo Electron ( TOELF ) and

Advantest ( ADTTF ) tracked their U.S. peers higher and a weaker yen

boosted exporters.

The Nikkei had gained 2.49% to 38,812.94 by the

midday break, rising for a fifth session in six. The broader

Topix was up 1.96% at 2,702.38.

"Gains in U.S. chip stocks, particularly those of Microns,

lifted Japanese chip shares," said Kentaro Hayashi, a senior

strategist at Daiwa Securities.

Shares of Micron Technology ( MU ) surged roughly 14% in

after-hours trading on Wednesday after the company forecast

higher-than-expected first-quarter revenue due to the thirst for

its memory chips used in artificial intelligence computing.

The dollar held firm against the yen after gaining

1% overnight. A weaker yen is seen as a boon for Japanese

exporters as it lifts profits when earnings from abroad are

brought home.

Chip-making equipment maker Tokyo Electron ( TOELF ) surged

6.96% and was the biggest boost to the Nikkei. Chip-testing

equipment maker Advantest ( ADTTF ) rose 5% and technology

investor SoftBank Group climbed 4%.

Sony Group ( SONY ) rose 2.36%.

Nitori ( NCLTF ), the home interior goods retailer which

relies on imports for most materials and tends to move along

with the yen, eased 0.07%.

Minutes of the Bank of Japan's July policy meeting were not

hawkish, lifting sentiment of stock investors, said Hayashi.

The minutes showed BOJ policymakers were divided on how

quickly the central bank should raise interest rates further,

highlighting uncertainty on the timing of the next increase in

borrowing costs.

At the July meeting, the BOJ unexpectedly raised short-term

interest rates to 0.25% by a 7-2 vote, taking another step

towards phasing out a decade of huge stimulus.

Of the more than 1,600 stocks trading on the Tokyo Stock

Exchange's prime market, 88% rose, 9% fell and 1% traded flat.

(Reporting by Junko Fujita; Editing by Subhranshu Sahu)

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