Tokyo hits three-month high as tech shares rally
Wednesday, 23 December 2009
HONG KONG, Dec 22 (Reuters): Tokyo stock market rose to its highest close in three months Tuesday as exporters were spurred by the dollar's rally against the yen and technology shares gained off the back of an Intel upgrade.
Asian shares rose across the board as technology stocks tracked a rally in their peers on Wall Street that took the Nasdaq to a 15-month high.
European stock markets were set to open slightly higher, according to financial spreadbetters, while US equity stock futures were up 0.3 per cent.
The dollar touched 91.49 yen, its highest level since late October, helped by the unwinding of short positions ahead of the year end. The dollar was steady against a basket of major currencies after reaching multi-week highs Monday.
Recent robust US economic data is supporting the dollar, raising expectations that the US Federal Reserve may raise interest rates sooner than earlier thought.
"It does all get back to when the Fed may or may not be tightening policy and the market is heading toward thinking they will get to tightening in Q3 next year," said Greg Gibbs, a currency strategist at RBS in Sydney.
Gold picked up, trading at $1,094.20 an ounce after hitting a six-and-a-half week low at $1,090.65 Monday. It has been depressed by the dollar's rebound and is nearly 11 per cent below record highs hit earlier this month.
Tokyo's Nikkei average rose 1.9 per cent to a three-month closing high. Shares of high-tech exporters gained after the tech-heavy Nasdaq hit the 15-month high, spurred by a brokerage upgrade of Intel Corp that cited solid "end-market" conditions.
Tokyo Electron Ltd, the world's No 2 semiconductor equipment maker, climbed 3.8 per cent and chip-tester maker Advantest Corp firmed 4.5 per cent. Sony Corp gained 2.7 per cent.
Toshiba Corp climbed 4.7 per cent, while DRAM chipmaker Elpida gained 4.6 per cent.
High-tech shares had also advanced Monday following solid quarterly results from Oracle and BlackBerry maker Research In Motion.
Taiwan's United Microelectronics Corp, the world's No 2 contract chip maker, jumped 2.5 per cent.
The MSCI index of Asia Pacific stocks traded outside Japan rose nearly 1 per cent, backed by the technology advances. The index has surged 60 per cent this year.
Asian shares rose across the board as technology stocks tracked a rally in their peers on Wall Street that took the Nasdaq to a 15-month high.
European stock markets were set to open slightly higher, according to financial spreadbetters, while US equity stock futures were up 0.3 per cent.
The dollar touched 91.49 yen, its highest level since late October, helped by the unwinding of short positions ahead of the year end. The dollar was steady against a basket of major currencies after reaching multi-week highs Monday.
Recent robust US economic data is supporting the dollar, raising expectations that the US Federal Reserve may raise interest rates sooner than earlier thought.
"It does all get back to when the Fed may or may not be tightening policy and the market is heading toward thinking they will get to tightening in Q3 next year," said Greg Gibbs, a currency strategist at RBS in Sydney.
Gold picked up, trading at $1,094.20 an ounce after hitting a six-and-a-half week low at $1,090.65 Monday. It has been depressed by the dollar's rebound and is nearly 11 per cent below record highs hit earlier this month.
Tokyo's Nikkei average rose 1.9 per cent to a three-month closing high. Shares of high-tech exporters gained after the tech-heavy Nasdaq hit the 15-month high, spurred by a brokerage upgrade of Intel Corp that cited solid "end-market" conditions.
Tokyo Electron Ltd, the world's No 2 semiconductor equipment maker, climbed 3.8 per cent and chip-tester maker Advantest Corp firmed 4.5 per cent. Sony Corp gained 2.7 per cent.
Toshiba Corp climbed 4.7 per cent, while DRAM chipmaker Elpida gained 4.6 per cent.
High-tech shares had also advanced Monday following solid quarterly results from Oracle and BlackBerry maker Research In Motion.
Taiwan's United Microelectronics Corp, the world's No 2 contract chip maker, jumped 2.5 per cent.
The MSCI index of Asia Pacific stocks traded outside Japan rose nearly 1 per cent, backed by the technology advances. The index has surged 60 per cent this year.