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Nikkei inches higher; Apple suppliers, chip-related shares outperform

Published 20/08/2019, 03:59
© Reuters.  Nikkei inches higher; Apple suppliers, chip-related shares outperform
JP225
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AAPL
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MU
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SOX
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TOPX
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7735
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8035
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6762
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6857
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6976
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TREIT
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TOKYO, Aug 20 (Reuters) - Japanese shares edged up on

Tuesday as investors tiptoed back into equities, amid signs of a

slight easing of trade tensions between the United States and

China and continued hopes for fresh stimulus moves by major

economies.

On Monday, Washington extended a reprieve that permits

China's Huawei Technologies HWT.UL to buy components from U.S.

companies by 90 days, to supply existing customers.

The Nikkei share average .N225 rose 0.4% to 20,642.72,

while the broader Topix .TOPX added 0.5% to 1,501.95 by the

midday break.

On Wall Street, all three major stock indexes gained

overnight, with Apple AAPL.O jumping 1.9% to provide the

biggest boost to the Nasdaq. .N/C

This helped Tokyo-listed Apple suppliers, with Taiyo Yuden

6976.T and TDK Corp 6762.T rising 1.1% and 1.0%,

respectively, and Foster Electric 6794.T advanced 1.3%.

After speaking with Apple's chief executive Tim Cook on

Sunday, U.S President Donald Trump said the CEO "made a good

case" that tariffs could hurt Apple, given that Samsung's

products would not be subject to those same tariffs. Tokyo-listed chipmaking-related firms also got a boost after

the U.S. Philadelphia semiconductor index .SOX climbed 1.9% on

Monday as Huawei's U.S. chip suppliers, such as Micron

Technology MU.O , rose.

Semiconductor manufacturing equipment maker Screen Holdings

7735.T surged 3.8% and chipmaking equipment supplier Tokyo

Electron 8035.T rallied 1.1%. Semiconductor test equipment

supplier Advantest 6857.T gained 1.4%.

Rate-sensitive TSE REIT index .TREIT rose 0.5%, extending

its winning streak to an eighth day to hit its fresh 12-year

highs since 2007. Hopes for additional stimulus helped sentiment after media

reports said Germany is prepared to increase fiscal spending,

and after the People's Bank of China took steps to lower

corporate borrowing costs by setting a new lending reference

rate.

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