Nikkei rises to 6-month high, chip-related shares lead gains

By Hideyuki Sano
TOKYO, Aug 13 (Reuters) - Japan's Nikkei share average
scaled a near six-month high on Thursday, driven by strong gains
in semiconductor-related stocks, with investors sticking to
hopes that Washington will deliver stimulus even as talks
between U.S. lawmakers stall.
The Nikkei .N225 rose above its July 9 peak to hit its
highest level since Feb. 21, almost fully recovering from its
decline since the start of the COVID-19 pandemic. By midday, it
was up 1.88% at 23,272.34.
The broader Topix .TOPX rose 1.10% to 1,623.18, closing in
on its June peak.
"Looking at various data, the prospects of a recovery in the
global manufacturing sector are getting solid," said Takuya
Hozumi, global investment strategist at Mitsubishi UFJ Morgan
Stanley Securities.
Investors also clung to hopes for more fiscal stimulus out
of the United States despite a lack of any signs of progress in
the talks between the White House and Democrats. Semi-conductor related shares advanced on hopes for more
chip demand related to new technologies, such as 5G
communication, after strong gains in global peers.
Chip-making machine maker Tokyo Electron 8035.T rose 3.3%
while Murata Manufacturing 6981.T , manufacturer of capacitors
and other electronic parts, added 2.7%.
Precision machine makers .IPRCS.T were the top performer
among the 33 Topix industry subindexes. Olympus 7733.T jumped
3.3% to a record high, while Terumo 4543.T rose 3.8%.
Pan Pacific International Holdings 7532.T jumped 8.3%
following brisk earnings growth and a dividend hike, while Secom
9735.T rose 4.9% after consensus-beating earnings.
Dai-ichi Life Holding 8750.T gained 2.5% on a share
buyback plan.
Some value-oriented shares, many of which are battling
sinking demand due to the pandemic, gave into profit-taking
after strong gains so far this month.
Nippon Steel 5401.T , which had risen more than 20% so far
this month, fell 2.5%.
Topix value .TOPXV rose just 0.5%, trailing 1.5% gains in
Topix growth .TOPXG

(Editing by Aditya Soni)