Japan’s Nikkei rises as chip-related stocks surge

TOKYO (Reuters): Japan’s Nikkei share average rose on Thursday, buoyed by gains in U.S. shares overnight and a sharp jump in index heavyweight Tokyo Electron after it forecast strong profits for this fiscal year.

The Nikkei was up 0.5 percent at 22,332.32 points by midmorning.

Semiconductor equipment maker Tokyo Electron jumped 9.7 percent and was the third most traded stock by turnover after it said it expected a 30 percent rise in its operating profit to 366 billion yen for this fiscal year ending March 2019.

It also expects to post a record profit for a third straight year.

The stock, which contributed a hefty 71 positive points to the Nikkei, had been battered in the past month following weakness in tech shares globally, so investors found this an opportunity to buy back.

Other chip-related stocks followed suit. Advantest Corp soared 3.4 percent, silicon maker Sumco Corp surged 4.4 percent and semiconductor equipment maker Screen Holdings advanced 3.9 percent.

The broader Topix added 0.2 percent to 1,771.98.