BL: Japan's Stocks Climb on Intel Forecast, Toshiba Leads Gains
By Patrick Rial
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April 16 (Bloomberg) -- Japan's stocks advanced a second day, led by technology companies including Toshiba Corp., after Intel Corp. forecast sales that may top analyst estimates.
Toshiba Corp., the world's second-biggest maker of flash memory chips, rose the most in two weeks, while Elpida Memory Inc. jumped. Sumitomo Mitsui Financial Group Inc. climbed after earnings from U.S. regional banks exceeded forecasts and the head of Lehman Brothers Holdings Inc. said the worst of the credit- market contraction has passed.
The Nikkei 225 Stock Average gained 143.96, or 1.1 percent, to 13,134.54 as of 9:29 a.m. in Tokyo. The broader Topix index added 12.00, or 1 percent, to 1,267.97.
``Intel's after-hours report was extremely positive and provides a good reason for semiconductor-related companies to take off today,'' Hiroichi Nishi, a Tokyo-based equities manager at Nikko Cordial Securities Inc., said in an interview with Bloomberg Television.
Intel, the world's biggest chipmaker, said yesterday after the close of trading revenue will be as much as $9.6 billion this quarter, compared with an average estimate of $9.25 billion in a Bloomberg survey of analysts. It said gross margin will rise to 56 percent this quarter from 53.8 percent in the previous three months.
Toshiba advanced 3.9 percent to 819 yen, the steepest rally since April 3. Elpida, Japan's largest computer memory-chip maker, rose 3.1 percent to 3,670 yen. Tokyo Electron Ltd., the world's second-largest supplier of semiconductor-production equipment, surged 4.3 percent to 6,250 yen.
Banks Rise
Sumitomo Mitsui, Japan's second-largest bank by market value, gained 2.2 percent to 733,000 yen. Mitsubishi UFJ Financial Group Inc., the biggest, added 3 percent to 968.
Regions Financial Corp., the biggest bank in Alabama, and M&T Bank Corp., partially owned by Warren Buffett's Berkshire Hathaway Inc., rallied yesterday after reporting better-than- projected profits. Meanwhile, Lehman's Chief Executive Richard Fuld said ``the worst is behind us'' in credit markets.
Financial shares were also boosted after the Financial Times said Singapore's state-owned Temasek Holdings Pte invested an additional $600 million in Merrill Lynch & Co. in February.
Victor Co. of Japan jumped 5.3 percent to 218 yen after the Nikkei newspaper reported the company will end sales of flat- panel televisions in Japan this year to focus on the more profitable U.S. and European markets. Matsushita Electric Industrial Co., Sharp Corp., Sony Corp. and Toshiba, which dominate the domestic television market, all climbed.
To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.
Last Updated: April 15, 2008 20:54 EDT
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