Tokyo Stocks Rise as Investors Wait for Profits; Rally in Chip Trading Sector

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TOKYO, 23 July – Japanese equities rose higher on Tuesday morning, with the semiconductor sector leading profits and following Wall Street movements, although trading remained thin ahead of the domestic April-June earnings season.

The Nikkei benchmark average rose 1.0% to 21,622.78 in late morning trading, the highest level for a week.

Overnight, the U.S. S&P 500 climbed 0.3%, a shadow below its July 15th record high, while the Dow Jones Industrial Average gained 0.1% and the Nasdaq Composite 0.7%.

Chip stocks were partly won by news that US President Donald Trump, at a meeting with heads of high technology companies, had agreed to make “timely” decisions on requests by US companies to sell to Huawei Technologies in China.

Following the example of Wall Street peers, the Japanese chip sector grew, with Tokyo Electron up 2.4% and Advantest and Disco up 1.7% and 2.0%, respectively.

Apple-related electronics parts manufacturers were also in demand after the Wall Street Journal reported that Apple Inc. was in advanced talks to buy Intel Corp.’s smartphone modem chip business, citing sources.

Murata Manufacturing Co, TDK Corp and Alps Alpine grew in that order by 3.0%, 2.5% and 2.6%, respectively.

Nikkei, the heavyweight of SoftBank Group Corp., grew 4.2% after Fox Business reported that US regulators signaled that they were about to give the green light to the $26 billion deferred merger between T-Mobile US Inc. and Sprint Corp.

The broader topix increased by 0.8% to 1,568.58.

Japan’s April June corporate earnings season will begin later this week. (Report by Tomo Uetake; Cut by Simon Cameron-Moore)

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Mette Frederiksen is a The Washington Newsday correspondent. With her coverage of general science, NASA and the interface between technology and society, Frederiksen has been in the Science Desk's Technology Beat since joining Washington Newsday in 2018.

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