Share prices in Tokyo closed higher for the seventh time in the past eight trading days, led by semiconductor producers. The Nikkei 225 gained 238.28 points, or 2.23pc, to a 14-month high of 10,922.04, while the broader Topix index rose 17.77 points, or 1.7pc, to 1,045.71. The chip sector benefited after Smith Barney upgraded its rating on the chip equipment sector to "overweight" from "market weight". In New York overnight, the Nasdaq jumped 1.6pc to an 18-month high of 8,188.62, with the chip stocks at the head of the leaderboard. Computer-related stocks such as Sony and Tokyo Electron also gained after Credit Suisse First Boston raised its ratings on IBM.
In economic news this morning, the Cabinet Office reported that Japanese machinery orders fell more than expected in July, snapping a two-month gain.
Private machinery orders from Japanese companies, excluding volatile shipping and utilities orders, fell 3.1pc in July from June, far sharper than the 0.8pc decline expected. Private sector machinery orders are seen as a leading indicator of corporate capital spending six to nine months ahead. //www.fxcentre.com