Nikkei Rides On Chipmakers, Energy Boost; SoftBank falls

TOKYO, Nov. 19 (Reuters) – The Nikkei stock average in Japan rose on Friday, as chipmaking giants followed a rally by their U.S. peers and energy stocks surged after the rebound in prices of the oil.

However, the gains were capped by a second consecutive day of losses for SoftBank Group (9984.T). SoftBank Group’s largest asset, Alibaba Group (9988.HK), on Thursday forecast the slowest revenue growth since its business debut in 2014. Read more

The Nikkei (.N225) gained 0.41% to 29,718.62 at the midday break, with energy by far the best performing sector, jumping 1.79%.

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The larger Topix (.TOPX) added 0.11%. The growth index (.TOPXG) rose 0.25%, against a slight loss for the value index (.TOPXV).

Chipmaker Tokyo Electron (8035.T) was the best-performing stock in the Nikkei, rising 4.88%. Advantest (6857.T) rose 2.63%.

Overnight, the Philadelphia Semiconductor Index (.SOX) rose 1.8% to its second closing record in three sessions, this time supported by a gain from Nvidia (NVDA.O) .

This helped the S&P 500 (.SPX) and the Nasdaq (.IXIC) to close at record highs.

Meanwhile, a rebound in crude oil from six-week lows helped energy companies. Inpex (1605.T) rose 3.11%.

However, US West Texas Intermediate crude remained below $ 80, from a multi-year high above $ 85 last month, helping to support investor sentiment more broadly.

“Inflation and the price of crude oil remain a priority for investors,” said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management.

“The market likes the drop in crude below $ 80 because it should eventually spill over into lower prices for gasoline and other things, which is seen as a plus for the economy.”

Elsewhere, Kubota jumped 4.3% on a plan to increase its stake in Indian tractor maker Escorts Ltd (ESCO.NS). Read more

Sportswear maker Asics (7936.T) rose 2.84% after Japanese Major League Baseball star Shohei Ohtani was named American League MVP. Read more

The Japanese government’s announcement of a $ 490 billion stimulus package has been largely ignored by the market, in part because the details were already reported by local media on Thursday. Read more

SoftBank Group slipped 1.45%, adding to the 2% decline from the previous session.

Tokyo Kikai (6335.T) fell 8.51% after the Supreme Court of Japan rejected a request to block a plan by the printing machine maker for a defense against the “poison pill” buyout. Read more

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Published by Uttaresh.V

Our Standards: Thomson Reuters Trust Principles.

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