Japanese Stocks Advance on Intel Earnings, Komatsu Forecast; Elpida Jumps
July 14 (Bloomberg) -- Intel Corp. Chief Financial Officer Stacy Smith talks with Bloomberg's Susan Li from Santa Clara, California, about the outlook for sales. Intel, the world's biggest chipmaker, reported record second-quarter sales and topped analysts' estimates with its forecast for this period, allaying concern that a rebound in technology spending is losing steam. Smith also discusses the company's investments in China. (Source: Bloomberg)
Japanese stocks rose after California-based Intel Corp., the world’s biggest chipmaker, reported better-than-expected net income and Komatsu Ltd. boosted its profit forecast.
Advantest Corp., the world’s largest maker of chip-testing equipment, leapt 5.7 percent. Komatsu, the world’s second- largest maker of earth movers, jumped 5.4 percent after raising its first-half profit forecast by 41 percent. Mizuho Financial Group Inc., Japan’s second-largest publicly traded bank by assets, advanced 3 percent after announcing the price of its share sale yesterday.
“The positive outlook for earnings is easing investors’ perception of risk in the market,” said Tomomi Yamashita, a fund manager in Tokyo at Shinkin Asset Management Co., which oversees $6 billion. “Economic growth needs to become sustainable. We are looking for strong economic data from the U.S.”
The Nikkei 225 Stock Average advanced 2.7 percent to 9,795.24 at the close of trading in Tokyo. The broader Topix index increased 1.9 percent to 870.73, with about nine stocks climbing for every one that fell. All 33 industry groups in the Topix climbed.
The Nikkei 225 has retreated 7.1 percent this year, compared with a drop of 1.8 percent by the Standard & Poor’s 500 Index and a gain of 0.8 percent by the Stoxx Europe 600 Index. Shares in the Japanese benchmark are valued at 18.2 times estimated earnings, compared with 13.4 times for the S&P 500 and 11.9 times for the Stoxx 600.
To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Monami Yui in Tokyo at myui1@bloomberg.net
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