Nikkei Average Driven Higher by Semiconductor Stocks

Tokyo, July 15 (Jiji Press)–Japan’s benchmark Nikkei 225 stock average gained more than 1,000 points on Wednesday, driven by semiconductor-related stocks following the overnight ascent of their U.S. peers. The index of 225 blue-chip issues listed on the Tokyo Stock Exchange’s Prime section finished at 68,751.51, up 1,008.01 points, or 1.48 pct, from Tuesday. The broader TOPIX index rose 49.14 points, or 1.22 pct, to 4,088.12. Both indexes advanced for the second straight day. Semiconductor stocks attracted hefty buying after the U.S. SOX Philadelphia semiconductor index jumped over 2 pct on Tuesday as an earnings report from IBM indicated that its clients were shifting funds to invest in hardware such as servers and memory products. IBM itself suffered a 25.2 pct rout. The sector was also backed by a surge in South Korea’s benchmark KOSPI index, which is heavily influenced by semiconductor stocks. Other sectors were also buoyant amid receding worries about a possible interest rate hike by the U.S. Federal Reserve, following the overnight release of a weaker-than-expected reading in the U.S. consumer price index for June. END [Copyright The Jiji Press, Ltd.]