Nikkei hits 5-1/2-month high after U.S.-China talks show progress

* Shippers, chip-related shares jump
* Constructors, home appliance makers rise after typhoon
damages

By Hideyuki Sano
TOKYO, Oct 15 (Reuters) - Japan's Nikkei share average rose
nearly 2% on Tuesday to its highest since late April, in a
delayed response to a potential U.S.-China trade deal outlined
by President Donald Trump last week.
Investors also bid up construction shares after Typhoon
Hagibis caused widespread damage in central and eastern Japan.
Reopening after a market holiday on Monday, the Nikkei
.N225 rose 1.87% to 22,207.21 points, its biggest daily gain
in more than a month.
The broader Topix .TOPX gained 1.56% to 1,620.20, near a
five-month closing high of 1,623.27 touched on Sept. 26.
Trump on Friday outlined the first phase of a deal to end a
trade war with China and suspended a threatened tariff hike, but
officials on both sides said much more work needed to be done
before an accord could be agreed. Shippers .ISHIP.T , sensitive to global demand and
developments in the U.S.-China trade war, jumped 2.9%, with
Kawasaki Kisen 9107.T rising 5.8% and Mitsui OSK Lines
9104.T 3.3%.
Semi-conductor related shares also soared.
Silicon wafer maker Sumco 3436.T rose 5.3%, while Shinetsu
Chemical 4063.T gained 2.6% to 20-month highs.
Screen Holdings 7735.T , maker of semiconductor
manufacturing machines, rose up to 3.5% to hit a one-year high.
Rohm 6963.T also scaled a year high and ended 4.5% higher.
Industrial robot manufacturer Fanuc 6954.T jumped 2.9%.
The construction sector .ICONS.T gained 2.4%. Kitano
Construction 1866.T , based in Nagano, one of the worst hit
areas by the typhoon, rose 13.2%.
Household appliance makers were also helped by hopes of
fresh demand for goods such as refrigerators and washing
machines.
Hitachi 6501.T rose 2.7% while Panasonic 6752.T gained
2.2% despite damage to one of its factories. Suzuki Motor
7269.T , manufacturer of light automobiles, gained 4.4%.
SoftBank Group 9984.T climbed 2.5% after media reports
that SBG has prepared a financing package for WeWork Companies
Inc that would give it control over the shared office space
company Elsewhere, Ryohin Keikaku 7453.T , operator of "Muji" brand
stores, soared 8.3%, extending its rally after its June-Aug
earnings beat market expectations last week.
Insurers gained despite the damaging typhoon, with Tokio
Marine 8766.T up 2.1%, MS&AD 8725.T 2.4% and Sompo Japan
8630.T 2.1%.
Despite broad gains on Tuesday, many investors remained
cautious on the trade outlook due to a dearth of details on the
agreement between the United States and China.
"The market mood has changed but the trade situation hasn't
actually changed much," said Masayuki Doshida, senior market
analayst at Rakuten Securities.