Chips lead Tokyo stocks higher by midday

In this story: Japan rally may have run its course Samsung leads Korea shares RELATED STORIES

By Staff and wire reports

TOKYO, Japan -- Extended gains in Advantest and other chip stocks led the Tokyo market higher by midday as investors continue to bid up the tech sector.

Advantest, a maker of semiconductor testing devices, jumped 5.07 percent to 14,310 yen, extending Thursday's 7.24 percent surge.

That helped the technology-sensitive Nikkei average to firm 1.15 percent or 154.07 points to 13,506.51, looking poised to end in positive territory for the third straight day.

Japan rally may have run its course

But analysts say the rally may have run its course, as market attention shifts to the four-way race to replace Japan's unpopular prime minister and concerns implementation of key reform proposals will take a back seat to political wrangling.

"Chips, techs, and the broader market are responding well to Wall Street strength, but it is still a mere knee-jerk reaction," says Hiroshi Arano, director of Dai-Ichi Kangyo Asset Management's investment trust management department.

"It is still very unclear to the market if stock-related tax reform and a solution to banks' debt woes will reach timely fruition in the uncertain political climate."

Gains in large-cap banks, securities, and telecom buoyed the broader TOPIX index, which rose 0.71 percent or 9.22 points to 1,310.55

Samsung leads Korea shares

South Korea's benchmark stock index was barely higher by noon, led by Samsung Electronics, as investors took profits on a third consecutive strong session.

Korea Composite Stock Price Index at noon was up 0.15 percent or 0.77 points at 514.98.

The Kosdaq was up 0.64 percent or 0.44 points to 68.76.

Samsung Electronics, the world's largest computer memory chipmaker, was up 1.75 percent at 204,000 won, buoyed by U.S. peer Micron Technology's overnight surge of 11.56 percent.

Reuters contributed to this report.

Chips pull Tokyo market higher at open
April 12, 2001

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