Japan shares rise as IT sector shines on bright semiconductor outlook

By Stanley White
TOKYO, April 1 (Reuters) - Japanese stocks rose on Thursday,
as investors snapped up shares of semiconductor-related
companies on the first day of the new fiscal year on hopes for
robust corporate earnings.
The Nikkei 225 Index .N225 ended up 0.72% at 29,388.87,
while the broader Topix .TOPX rose 0.19% to 1,957.64.
The technology sector led the advance after U.S. chipmaker
Micron Technology Inc MU.O forecast third-quarter revenue
above analysts' forecasts. "What's happening with Japanese tech shares is a reflection
of what is happening in the United States," said Takashi Hiroki,
chief strategist at Monex Securities.
Sentiment in Japan brightened after the Bank of Japan's
tankan survey showed business sentiment has returned to where it
was before the onset of the COVID-19 pandemic. "We're in a new fiscal year and a lot of institutional
investor money is entering the market. Companies will start
releasing earnings at the end of the month, and I expect a lot
of forecast upgrades," Hiroki said.
Tokyo Electron Ltd 8035.T rose 4.68%, at one point hitting
an all-time high, as Micron's bullish sales forecasts and a gain
in U.S. technology shares boosted Japanese semiconductor-related
stocks.
In addition, Micron and Western Digital Corp WDC.O are
individually exploring a potential deal for Kioxia Holdings Corp
that could value the unlisted Japanese semiconductor firm at
around $30 billion, the Wall Street Journal reported on
Wednesday. Investors are flocking to semiconductor makers because a
global shortage of chips required for next-generation electric
cars and advanced smartphones suggests demand will remain robust
for a long time, analysts said. Chip manufacturing equipment makers Advantest Corp 6857.T
gained 4.13%, while Screen Holdings Co Ltd 7735.T rose 6.06%.
U.S. President Joe Biden's $2.3 trillion infrastructure plan
and a weakening yen also boosted sentiment for Japanese stocks,
analysts said. The underperformers among the Topix 30 were Mitsui & Co Ltd
8031.T , down 2.41%, followed by Recruit Holdings Co Ltd
6098.T , off 2.26%.