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Nikkei edges up to one-year high; chip-related stocks cap gains

Published 23/10/2019, 08:24
© Reuters.  Nikkei edges up to one-year high; chip-related stocks cap gains
JP225
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BIIB
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TXN
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TOPX
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4523
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8035
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4005
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9984
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6723
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6594
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6963
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IPHAM.T
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By Tomo Uetake

TOKYO, Oct 23 (Reuters) - Japan's key benchmark stock index

edged up to a one year-high, supported by gains for the phrama

sector thanks to drugmaker Eisai rallying hard, though weak

chip-related stocks capped the gains after disappointing results

from Texas Instruments.

The benchmark Nikkei average .N225 added 0.3% to

22,625.38, its highest finish since October last year, while the

broader Topix .TOPX advanced 0.6% to a 10-1/2-month closing

peak at 1,638.14.

Tokyo-listed semiconductor-related shares were hit hard,

with Rohm 6963.T , Renesas Electronics 6723.T and Tokyo

Electron 8035.T sliding 4.1%, 5.3% and 4.1%, respectively, as

Texas Instruments TXN.O slumped nearly 10% in after-hour

trading overnight.

The leading American chip designer on Tuesday forecast

current-quarter revenue well below estimates, in a fresh sign

that the global microchip industry is being squeezed by a

downturn in demand as well as a prolonged U.S.-China trade

dispute. The Nikkei heavyweight Softbank Group 9984.T shed 2.5% as

the tech conglomerate agreed to spend $10 billion to take over

U.S. office-space sharing startup WeWork on Tuesday, doubling

down on an ill-fated investment and paying off its co-founder

Adam Neumann to relinquish control. Drugmaker Eisai 4523.T soared 18.1% to its daily-limit

high after its partner Biogen BIIB.O revived plans on Tuesday

to seek U.S. approval for Alzheimer's treatment aducanumab,

which surprised investors and sent the U.S. pharma firm's share

up 27% overnight. The pharmaceutical sector .IPHAM.T jumped 2.4%, helped by

Eisai's big gains, to become the second best performers among

the Tokyo bourse's 33 sector subindexes.

Sumitomo Chemical 4005.T dropped 3.2% after the company

slashed its operating profit forecast for the year through March

by 10.5% to 170 billion yen ($1.6 billion).

Japan's mid-year earnings season kicks off this week, with

electric-motor maker NIDEC's 6594.T results coming after the

market close on Wednesday.

($1 = 108.3800 yen)

(Editing by Simon Cameron-Moore & Shri Navaratnam)

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