Japan stocks gain on signs of boost to IT sector earnings

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 rose 1.17% to 29,520.65 by 0214
GMT, while the broader Topix .TOPX rose 0.68% to 1,967.30.
The technology sector led the advance after U.S. chipmaker
Micron Technology Inc MU.O forecast third-quarter revenue
above analysts' forecasts. The mood for Japanese equities also brightened after the
Bank of Japan's tankan survey showed business sentiment has
returned to where it was before the onset of the coronavirus
pandemic. "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.
"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."
Tokyo Electron Ltd 8035.T rose 3.89% and at one point hit
an all-time high as Micron's bullish sales forecasts and a gain
in U.S. technology shares on Wall Street 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. Screen Holdings Co Ltd 7735.T , another prominent
chip-related company, rose 5.95%.
Dai-ichi Life Holdings Inc 8750.T , surged by 9.62% after
the insurer announced a share buyback.
Details of U.S. President Joe Biden's $2.3 trillion
infrastructure investment plan and a weakening yen also boosted
sentiment, analysts said. The underperformers among the Topix 30 were Mitsui & Co Ltd
8031.T down 2.19%, followed by Toyota Motor Corp 7203.T
losing 1.74%.