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Nikkei edges up to one-year high; chip-related stocks cap gains

Published 10/23/2019, 03:24 PM
Updated 10/23/2019, 03:32 PM
Nikkei edges up to one-year high; chip-related stocks cap gains
JP225
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BIIB
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TXN
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TOPX
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4523
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8035
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4005
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9984
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6723
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6594
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6963
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IPHAM.T
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By Tomo Uetake
TOKYO, Oct 23 (Reuters) - Japan's key benchmark stock index
edged up to a one year-high, supported by gains for the phrama
sector thanks to drugmaker Eisai rallying hard, though weak
chip-related stocks capped the gains after disappointing results
from Texas Instruments.
The benchmark Nikkei average .N225 added 0.3% to
22,625.38, its highest finish since October last year, while the
broader Topix .TOPX advanced 0.6% to a 10-1/2-month closing
peak at 1,638.14.
Tokyo-listed semiconductor-related shares were hit hard,
with Rohm 6963.T , Renesas Electronics 6723.T and Tokyo
Electron 8035.T sliding 4.1%, 5.3% and 4.1%, respectively, as
Texas Instruments TXN.O slumped nearly 10% in after-hour
trading overnight.
The leading American chip designer on Tuesday forecast
current-quarter revenue well below estimates, in a fresh sign
that the global microchip industry is being squeezed by a
downturn in demand as well as a prolonged U.S.-China trade
dispute. The Nikkei heavyweight Softbank Group 9984.T shed 2.5% as
the tech conglomerate agreed to spend $10 billion to take over
U.S. office-space sharing startup WeWork on Tuesday, doubling
down on an ill-fated investment and paying off its co-founder
Adam Neumann to relinquish control. Drugmaker Eisai 4523.T soared 18.1% to its daily-limit
high after its partner Biogen BIIB.O revived plans on Tuesday
to seek U.S. approval for Alzheimer's treatment aducanumab,
which surprised investors and sent the U.S. pharma firm's share
up 27% overnight. The pharmaceutical sector .IPHAM.T jumped 2.4%, helped by
Eisai's big gains, to become the second best performers among
the Tokyo bourse's 33 sector subindexes.
Sumitomo Chemical 4005.T dropped 3.2% after the company
slashed its operating profit forecast for the year through March
by 10.5% to 170 billion yen ($1.6 billion).
Japan's mid-year earnings season kicks off this week, with
electric-motor maker NIDEC's 6594.T results coming after the
market close on Wednesday.

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($1 = 108.3800 yen)

(Editing by Simon Cameron-Moore & Shri Navaratnam)

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