Tokyo's Nikkei average rose nearly 1 percent on Tuesday to a six-month closing high, lifted by gains in tech stocks such as Nikon Corp after the US Nasdaq Composite Index snapped a six-session losing streak. Kirin Brewery Co helped lead advances after raising its stake in Philippine food and drinks firm San Miguel Corp, while retail shares such as supermarket operator Ito-Yokado Co gained on improved earnings.
The Nikkei rose 0.93 percent to finish at 11,539.99, its highest close since July 13, when it hit 11,608.62. It was the first day of trade for the week with Monday closed for a national holiday.
The broader TOPIX index ended up 1.01 percent at 1,157.30.
Taking their cue from the first rise in the Nasdaq in 2005, investors shook off wariness ahead of bellwether Intel Corp's earnings due later in the day.
Chip-related issues made some of the strongest advances, with Nikon, which m anufactures steppers for making semiconductors, rising 2.0 percent to 1,250 yen. Tokyo Electron Ltd, the world's second-largest maker of chip equipment, put on 2.2 percent to 6,170.
NEC Electronics Corp jumped 3.7 percent to 4,990 yen despite saying it expects its third-quarter operating profit to be down 94 percent from the second quarter. Goldman Sachs said in a report it did not expect the company to make any more negative announcements.
Among tech stocks, market participants also noted core large-cap Sony Corp extended gains for a second session above the 4,000 level, finishing 1 percent higher at 4,060. Sony had been under pressure for the last half year due to a 287 billion yen ($2.75 billion) convertible bond issued 15 years ago and due to mature this March with a conversion price set at 3,995 yen.
Advancers outpaced decliners 1,254 to 247 and buying was broad-based with all but one of the TOPIX's 33 subsectors finding higher ground. "The view that Tokyo stocks have lagged compared to overseas markets is still at play here," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments.
Kirin, which aims to strengthen its presence in Asia and Oceania with the help of San Miguel, jumped 2.7 percent to 1,054 yen after spending $156 million to become its second-largest shareholder.
Ito-Yokado gained 1.4 percent to 4,240 yen after reporting last Friday that its net profit for the three months to November 30 jumped 51 percent, bolstered by large dividend income from its stake in Seven-Eleven Japan Co.
Seven Eleven, Japan's biggest convenience store chain, added 1.3 percent to reach 3,220 yen after its net profit rose 3.4 percent in the third quarter as new shops helped offset weak same-store sales.
Trading was active with about 1.68 billion shares changing hands on the first section, up from 1.66 billion on Friday.
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