Japan’s Nikkei hits record high as chip-related stocks track US peers

By Junko Fujita

TOKYO, Oct 7 (Reuters) – Japan’s Nikkei share average hit a record high on Tuesday as chip-related stocks advanced to track their U.S. peers, but the index pared gains as enthusiasm toward a new leader of the nation’s ruling party retreated.

As of 0044 GMT, the Nikkei .N225 was up 0.3% at 48,075.52, after hitting a record high of 48,527.33 earlier in the sesion.

The broader Topix .TOPX edged up 0.14% at 3,230.82.

The Nikkei rallied for a third straight session on Monday, and crossed the 48,000 level for the first time, after Sanae Takaichi was all but confirmed to become the country’s next premier, stoking bets on a revival in big spending and loose monetary policy.

“Investors continued to buy stocks on expectations for Takaichi’s policy today, but the market did not have the momentum it had in the previous session,” said Yugo Tsuboi, chief strategist at Daiwa Securities.

“Shares are not rising in a broad rally, with half of the stocks falling.”

Chip-testing equipment maker Advantest 6857.T rose 1.34%, while SoftBank Group 9984.T, an investor in artificial intelligence-related firms, rose 0.96% to track its U.S. peers.

Overnight, the S&P 500 .SPX and the Nasdaq .IXIC reached record closing highs on Monday, as AI-related dealmaking boosted investor sentiment even as the U.S. government shutdown extended through its sixth day.

Chip-making equipment maker Tokyo Electron 8035.T reversed gains to fall 0.36%.

Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 52% fell, 42% rose and 5% traded flat.

(Reporting by Junko Fujita; Editing by Rashmi Aich)

((junko.fujita@thomsonreuters.com;))