Nikkei gains on fifth day as chip-related shares shine

TOKYO, Jan 13 (Reuters) - Japan's benchmark Nikkei stock
average extended its bull run to a fifth straight session on
Wednesday and hit a 30-year high, with semiconductor shares
leading the gains on expectations of strong demand recovery in
the industry.
Nikkei share average .N225 gained 1.04% to 28,456.59, its
highest finish since 1990. The broader Topix .TOPX edged up
0.35% to 1,864.40, also marking a five-day winning streak.
Chip-related shares were at the driving seat, with Tokyo
Electron 8035.T rising 5.3% and Advantest 6857.T gaining
5.5%, on the back of sharp gains in U.S. peers such as Lam
Research LRCX.O and Applied Materials AMAT.O .
Renesas Electronics 6723.T rose 4.7% to bring its gains so
far this week to more than 10%.
While semiconductor-related shares have benefited from virus
lockdowns, they have gained additional boost from an increase in
demand for chips for cars, said Norihiro Fujito, chief
investment strategist at Mitsubishi UFJ Morgan Stanley.
"Investors are buying chip device manufacturing shares
globally due to an unexpected recovery in demand for cars,"
Fujito said.
Electrical equipment maker Yaskawa Electric 6506.T rose
4.4% after it raised its operating profit forecast on healthy
demand for chips and electronic components in China.
On the other hand, a shortage of chips for cars is starting
to weigh on automaker shares.
Chip shortage had forced Japan's largest automaker to cut
production of its Tundra pickup truck at its San Antonio plant
in Texas. Toyota Motor 7203.T dropped 0.6%, while Nissan Motor
7201.T fell 2.2% and Suzuki Motor 7267.T lost 2.1%.
Seven & I Holdings 3382.T ended flat despite a positive
earnings outlook.
Toho Co 9602.T , the film distributor of "Demon Slayer",
plunged 6.7% after it raised its profit forecast on the success
of the animated film, which shattered a box-office record in
Japan, with investors taking profits on the news.