(Adds comment, stocks, details)
By Aiko Hayashi
TOKYO, April 16 (Reuters) - Japan's Nikkei stock average rose
1.4 percent on Wednesday, boosted by chip-related shares such as
Advantest Corp <6857.T> and other high-tech exporters on optimism
about their profitability after Intel Corp <INTC.O> affirmed its
profit-margin target for 2008.
Financial shares, including top lender Mitsubishi UFJ
Financial Group <8306.T>, picked up steam after
stronger-than-expected quarterly results at several U.S. regional
banks boosted stocks of financial companies there.
JVC <6792.T> shot up more than 6 percent after a source with
direct knowledge of the matter said on Wednesday that the
struggling consumer electronics maker is considering drastically
scaling back its home-use LCD TV operations in Japan.
[]
"Investors are returning to Japanese high-tech companies as
Intel's earnings indicated that industry-wide demand for
semiconductors for PCs hasn't dropped despite the worsening
economic outlook," said Kazuhiro Takahashi, a general manager of
the equity marketing department at Daiwa Securities SMBC.
Intel on Tuesday affirmed its profit-margin target for 2008,
reassuring investors worried about falling memory chip prices and
the impact of a weak U.S. economy, sending its stock up 8
percent. []
"I expect gains to be limited as the market awaits a series
of earnings overnight, though the Nikkei could reach the 13,300
level if other Asian markets move higher in the afternoon," said
Takahashi.
The benchmark Nikkei average <> added 184.04 points to
end the morning at 13,174.62, after closing up 0.6 percent on
Tuesday.
The broader TOPIX index <> climbed 1.4 percent or 17.59
points to 1,273.56.
The rocky ride for the U.S. stock market is expected to
continue this week, with earnings reports due from Merrill Lynch
<MER.N>, Citigroup <C.N> and other large banks and financial
services companies, as well as reams of economic data. First up
is JPMorgan Chase <JPM.N>, which reports earnings on Wednesday.
"The results from the U.S. regional banks came as a surprise
and provided some relief in the market as investors had feared a
scenario where regional banks also started collapsing," said
Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
INTEL EFFECT
Advantest, the world's largest maker of microchip testers,
gained 4 percent to 2,850 yen and chip gear maker Tokyo Electron
Ltd <8035.T> jumped 4.8 percent to 6,280 yen.
Shinko Electric <6967.T>, which supplies plastic laminate
substrates and heat spreaders to Intel, surged 11.2 percent to
1,346 yen, while Ibiden Co <4062.T>, which supplies chip packages
to Intel, shot up 10.1 percent to 4,460 yen.
Other high-tech exporters also rose, with Canon Inc <7751.T>
up 4.1 percent at 4,780 yen and Sony Corp <6758.T> rising 3.2
percent to 4,180 yen.
Mitsubishi UFJ climbed 4 percent to 978 yen, while No.2
Mizuho Financial Group <8411.T> added 3.1 percent to 439,000 yen
and Sumitomo Mitsui Financial Group <8316.T>, the third-biggest
bank, gained 2.9 percent to 738,000 yen.
The U.S. regional banks' results contrasted with the
unexpected loss posted Monday by Wachovia Corp <WB.N>, the
nation's fourth-largest bank.
Shares of JVC jumped 6.3 percent to 220 yen.
The Nikkei business daily reported earlier that the firm
plans to end domestic production and sales of flat-panel
televisions, succumbing to fierce competition, and will instead
focus on North America and Europe. []
Property firms found favour, with Mitsui Fudosan Co Ltd
<8801.T> up 5.8 percent at 2,375 yen, while Mitsubishi Estate Co
Ltd <8802.T> rose 3.7 percent to 2,790 yen and Sumitomo Realty &
Development Co Ltd <8830.T> jumped 6.4 percent to 2,160 yen.
Inpex Holdings Inc <1605.T>, Japan's top oil and gas
developer, added 2.5 percent to 1.25 million yen after oil prices
jumped to a record above $114 a barrel on Tuesday amid supply
worries and weakness in the dollar. []
Trade was moderate on the Tokyo exchange's first section,
with 843 million shares changing hands, in line with last week's
morning average of 840 million.
Advancing stocks outnumbered declining ones by nearly 3 to 1.
(Editing by Brent Kininmont)
