Tokyo shares hit 10-mth high on weaker yen; chip-related stocks shine

By Tomo Uetake
SYDNEY, Oct 16 (Reuters) - Japanese shares rallied to more
than 10-month highs on Wednesday as a weaker yen lifted bluechip
exporters, while chipmaking-related stocks advanced, taking
their cue from Wall Street peers.
The benchmark Nikkei share average .N225 climbed 1.2% to
22,472.92, its highest close since Dec. 3, having gaided 1.9%
gains on Tuesday. The broader Topix .TOPX rose 0.7% to
1,631.51, also closing at its highest in more than 10 months.
Overnight, the Japanese yen hit a 2-1/2 month low of 108.90
yen JPY= against the greenback as investors flocked to riskier
assets on hopes of an orderly British exit from the European
Union.
Officials and diplomats involved in negotiations over the
acrimonious divorce between the world's fifth-largest economy
and its biggest trading bloc said that differences over the
terms of the split had narrowed significantly. Yen-sensitive auto and car parts makers were in demand, with
Toyota Motor Co 7203.T and Nissan Motor 7201.T rising 1.0%
and 1.2%, respectively, while Bridgestone 5108.T gained 1.6%.
Among other blue-chip exporters, NIDEC 6594.T advanced
2.2%, Mitsubishi Electric 6503.T climbed 2.7% and Omron
6645.T added 2.0%.
Chipmaking-related firms received a boost after the U.S.
Philadelphia semiconductor index hit a record high and NVIDIA
NVDA.O soared 5.3% on Tuesday. In Tokyo, Advantest 6857.T rose 2.7%, Screen Holdings
7735.T jumped 2.9% and Tokyo Electron 8035.T added 1.4%.
"Apparently some investors are buying tech and machinery
stocks in fear of being left behind the curve, without waiting
for upcoming earnings results of those companies to confirm
their optimism," said Yasuo Sakuma, chief investment officer at
Libra Investments.
Elsewhere, Unizo Holdings 3258.T surged 5.4% after private
equity firm Blackstone BX.N ratcheted up its pursuit of the
Japanese hotel operator by launching a 5,000-yen-per-share
tender offer. Bucking the firm broader trend, East Japan Railway 9020.T
fell 1.2% after the company said it would take at least a couple
of weeks to fully repair damage caused by Typhoon Hagibis to its
Hokuriku bullet train line.
Japan's start-up markets also fared worse, with the Mothers
index .MTHR shedding 1.0% to a 1-1/2 month closing low of
836.40.