Nikkei rises to 1-1/2-week high on U.S. gains, Intel forecast

Wed Jul 16, 2014 9:55pm EDT

* U.S. M&A activity boosts confidence in market - fund
manager
    * Intel supplier Shinko Electric soars to 6-month high

    By Ayai Tomisawa
    TOKYO, July 17 (Reuters) - Japan's Nikkei share average rose
to a 1-1/2-week high on Thursday, buoyed by gains on Wall
Street, while Shinko Electric Industries Co jumped on
Intel Corp's strong forecast.
    The Nikkei rose 0.4 percent to 15,443.56 points in
mid-morning trade after hitting as high as 15,465.74, the
highest level since July 7.
    U.S. markets rose after Twenty-First Century Fox Inc
 said it had offered to buy Time Warner Inc for
$80 billion, a move that would unite two of the world's most
powerful media conglomerates. But Time Warner rebuffed the
offer. 
    "Investors had doubts about further gains in the U.S. stock
market after momentum shares fell yesterday. We were prepared to
see a correction in the U.S. market," said Takatoshi Itoshima,
chief portfolio manager at Commons Asset Management. "But such
M&A and partnership deals have energised sentiment and boosted
confidence."
    Shinko Electric, which supplies such products as plastic
laminated packages and heat spreaders to Intel, soared 6.2
percent to a six-month high after the world's largest chipmaker
forecast quarterly revenue above analysts' estimates.
 
    Some 41 percent of Shinko's group sales came from Intel for
the year ended March 2014. 
    Exporters were mixed after the dollar was flat against the
yen at 101.65. Toyota Motor Corp added 0.4
percent, Honda Motor Co shed 0.2 percent, and Advantest
Corp advanced 0.5 percent.
    The broader Topix gained 0.4 percent and the
JPX-Nikkei Index 400 added 0.4 percent to 11,632.15.
    

 (Editing by Kim Coghill)
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