U.S. stimulus bets, semiconductor revival drive Japan stocks to 30-year high

By Stanley White
TOKYO, Jan 8 (Reuters) - Japanese stocks surged on Friday to
a 30-year peak as optimism about further fiscal stimulus under
incoming U.S. President Joe Biden and an improving outlook for
semiconductor demand boosted investor appetite for riskier
assets.
The Nikkei 225 Index .N225 was up 1.49% at 27,900.64 by
0200 GMT. The benchmark index surged to the highest since August
1990 shortly after the opening bell, with technology, raw
materials, and banking shares leading the advance.
The broader Topix .TOPX rose 0.89% to 1,842.67, reaching
the highest since February 2018.
Sentiment for global equities got a major boost this week
after Biden's Democrats won control of the U.S. Senate in runoff
elections, which will make it easier for his government to use
big fiscal spending to stimulate the economy. In addition, the outlook for the tech sector has brightened
considerably after semiconductor makers Samsung Electronics Co
Ltd 005930.KS and Micron Technology Inc MU.O forecast robust
profit and revenue.
"We should expect more fiscal spending and more deficits
under Biden," said Masayuki Kichikawa, chief macro strategist at
Sumitomo Mitsui Asset Management Co.
"We have a reflationary trade, because we have a weak
dollar, stronger equities, higher long-term yields, and higher
commodity prices."
The stocks that gained the most among the top 30 core Topix
names were Murata Manufacturing Co Ltd 6981.T up 3.4%,
followed by Daikin Industries Ltd 6367.T rising 2.95%.
The Topix index for electric machinery makers .IELEC.T ,
which includes many semiconductor-related shares, rose 1.94% to
the highest since May 2000.
The underperformers among the Topix 30 were Hoya Corp
7741.T down 1.79%, followed by Central Japan Railway Co
9022.T losing 0.14%.
There were 162 advancers in the Nikkei index against 56
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.58 billion, compared with the average
of 1.19 billion in the past 30 days.