* Nikkei has risen 0.5 pct for the week so far
* Apple-suppliers attract buying after chip sector's strength
* Investors wary over U.S.-China trade talks - analyst
By Ayai Tomisawa
TOKYO, Jan 25 (Reuters) - Japan's Nikkei rallied on Friday as chip-related firms extended gains, tracking sharp rises in their U.S. counterparts, while investors looked to major events next week for direction.
The Nikkei share average .N225 rose 1.0 percent to 20,783.67 at the midday break. The benchmark index has risen 0.5 percent for the week so far.
Chip-related stocks, which rallied on Thursday as investors took heart from Texas Instruments' TXN.O and Xilinx Inc's XLNX.O earnings after U.S. market hours on Wednesday, continued to soar as the results were welcomed on Wall Street overnight. who were already excited about the U.S. chip sector's earnings the day before got even more reassured after they saw how their stocks moved," said Shogo Maekawa, a global market strategist at JPMorgan (NYSE: JPM ) Asset Management.
Maekawa added that a recovery in the global cyclical chip sector is taken as a silver-lining amid concerns about a global economic slowdown.
He said that investors were focusing on some key events next week such as U.S.-China trade talks. "The market is cautious especially after comments from Ross," Maekawa said.
U.S. Commerce Secretary Wilbur Ross said on Thursday that the United States and China are "miles and miles" from resolving trade issues but there is a fair chance the two countries will get a deal. U.S. Treasury Secretary Steven Mnuchin was somewhat more upbeat, saying the United States and China were "making a lot of progress" in the talks, but he did not elaborate on areas where that progress could be seen.
The Philadelphia SE Semiconductor Index .SOX , under pressure in recent months after Apple Inc AAPL.O warned of waning smartphone demand, saw its biggest one-day percentage gain since Dec. 26, advancing 5.7 percent.
Elsewhere, Nissan Motor Co 7201.T rose 2.6 percent after Renault RENA.PA appointed Michelin (PA: MICP ) boss Jean-Dominique Senard as its new chairman on Thursday, after Carlos Ghosn was forced to resign in the wake of a financial scandal that has rocked the French carmaker and its alliance with Nissan. broader Topix .TOPX gained 0.9 percent to 1,567.09. (Editing by Jacqueline Wong)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.