Japanese shares rise as chip-related stocks rally

Published: April 27, 2018 11:58:37 | Updated: April 30, 2018 14:04:59


File Photo (Collected)

Japanese stocks rose on Friday morning as chip-related firms rallied after brisk earnings forecasts from Advantest and Kyocera, but a profit warning from index-heavy Fanuc saw its shares nosedive.

The Nikkei share average gained 0.3 per cent to 22,375.71 in midmorning deals on the last trading day of April. Markets will be closed on Monday in Japan for a national holiday.

For the week, the Nikkei has gained 1.1 per cent so far and is poised for a fifth straight weekly gain, the longest winning streak since last fall. The index has risen 4.4 per cent for the month, the biggest monthly rise since last October

The market has been supported by a weaker yen, earnings hopes and more recently on easing worries over a full-scale China-US trade war.

Semiconductor equipment maker Advantest and Kyocera, which makes electronic devices, jumped around 12 per cent each after forecasting strong profits this fiscal year. Kyocera also announced a share buyback plan.

In sharp contrast, industrial robot maker Fanuc Corp tumbled 12 per cent after the company said it expects annual operating profit to fall 34 per cent to 151.7 billion yen ($1.4 billion), citing trade friction and lean investment in technology.

The broader Topix advanced 0.1 per cent to 1,774.39.

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