Japanese Stocks Advance for Second Straight Day on U.S. Earnings, Buybacks

Bloomberg Jan 25--Japanese stocks gained for a second consecutive day, as semiconductor-related companies climbed after chipmakers reported increased earnings and as higher metal prices boosted commodity shares.

Nikon Corp., a supplier of steppers used in chip making, and Sumco Corp., a maker of silicon wafers, climbed the most in the Nikkei 225 Stock Average. Dainippon Screen Manufacturing Co., which also makes chip equipment, gained 4 percent after the Nikkei newspaper said orders increased. Mitsubishi Corp., Japan’s largest commodities trader, climbed 0.8 percent.

The Nikkei 225 Stock Average rose 0.7 percent to 10,421.73 as of 10:05 a.m. in Tokyo. The broader Topix gained 1 percent to 926.24, with more than five times as many shares up as down.

“International blue chips will likely be the main targets for investors to buy, leading gauges to further gains,” said Fumiyuki Nakanishi, a strategist at Tokyo-based SMBC Friend Securities Co. “The Nikkei 225 will likely advance further, reflecting the surge in the Dow in New York.”

The Dow Jones Industrial Average climbed 0.9 percent yesterday to 11,980.52, its highest close since June 2008.

Nikon jumped 5.7 percent to 1,977 yen, the biggest increase in the Nikkei, followed by Sumco, which advanced 3.3 percent to 1,316 yen. Electronics companies contributed the most to the Topix’s gain among its 33 industry groups.

U.S.-based Texas Instruments Inc., the largest maker of analog chips, yesterday reported a 44 percent gain in fourth- quarter profit. STMicroelectronics NV, Europe’s No. 1 chipmaker, forecast first-quarter revenue that may top analysts’ predictions.

Commodity Shares Advance

Dainippon Screen gained 4 percent to 731 yen after the Nikkei newspaper said the company probably received 32 percent more orders for semiconductor-manufacturing equipment during the October-December period.

Mitsubishi rose 0.8 percent to 2,335 yen. Mitsui & Co., a trading company that counts commodities as its biggest source of profit, increased 0.6 percent to 1,407 yen.

Copper gained for a second straight session on signs of rebounding demand in China, the world’s largest buyer, and a recovery in Europe. Tin reached a record. The London Metal Exchange Index of six metals including copper and aluminum gained 0.4 percent yesterday, rising for a second day.