Japan's Nikkei hits year high as techs catch a break on earnings optimism

By Stanley White
TOKYO, Oct 24 (Reuters) - Japan's Nikkei index rallied to
its highest level in more than a year on Thursday, as investors
bought back recently beaten down semiconductor-related shares on
optimism for improved corporate earnings.
The Nikkei benchmark share average .N225 ended up 0.55% at
22,750.60. It earlier rose to 22,780.99, the highest since Oct.
18, 2018. So far it is up 13% for the year.
Shares rose for the fourth consecutive trading session as
investors who recently sold off Japanese technology stocks
turned into bargain hunters following Microsoft Corp's MSFT.O
higher-than-expected sales forecasts for its cloud computing
services. A slightly weaker yen, which tends to boost earnings
repatriated from overseas, also supported share prices of
Japan's major exporters.
"We're in the age of big data and artificial intelligence,
and both require semiconductors," said Kiyoshi Ishigane, chief
fund manager at Mitsubishi UFJ Kokusai Asset Management Co in
Tokyo.
"I don't see how you can argue that future demand for
semiconductors will weaken. Japanese stocks can gain another 10%
to 20% from current levels."
There were 166 advancers on the Nikkei index against 51
decliners on Thursday.
The information and technology sector was the biggest
gainer, rising 0.25%. Chip-making equipment manufacturer Tokyo
Electron Ltd 8035.T rose 2.18%, while electronic devices maker
Kyocera Corp 6971.T gained 1.13%.
The largest percentage gainers in the index were
pharmaceutical company Eisai Co Ltd 4523.T up 15.3%, followed
by parcel delivery firm Yamato Holdings Co Ltd 9064.T gaining
4.06%, and Hino Motors Ltd 7205.T up by 3.75%.
Eisai's shares have gained rapidly since it agreed with its
U.S. partner Biogen Inc BIIB.O on Tuesday to revive plans to
seek U.S. approval for an Alzheimer's treatment. The largest percentage losses in the index were materials
maker Toray Industries Inc 3402.T down 4.35%, followed by
SoftBank Group Corp 9984.T losing 2.94%, and property
developer Tokyu Fudosan Holdings Corp 3289.T down by 2.59%.
Softbank's shares hit their lowest since Jan. 30 on Thursday
on continued worries that its finances will weaken due to its
bailout of office-space sharing startup WeWork. The broader Topix index .TOPX rose 0.34% to 1,643.74.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.2 billion, compared with the average of
1.24 billion in the past 30 days.

(Editing by Jacqueline Wong & Shri Navaratnam)