Japanese stocks jump as Fed announces rate cut at the end of the month and chip sector gains ground

TOKYO, July 19 (Reuters) – Japanese stocks have resumed their ascent after the rally in risky badets following the rally of stock market badets after a US Federal Reserve official has beefed up its forecasts for the future. 39, a decline in US rates later this month, the semiconductor sector in the lead.

The benchmark Nikkei stock average rose 2.0% to 21,466.99, following a 2.0% dip Thursday. The rebound brought the index above some major technical support levels, including moving averages of 25 and 50 days.

For the week, the Nikkei posted a 1.0% loss, its biggest weekly drop since the end of May.

"It's not surprising to see this type of technical rebound after yesterday's sale. But many investors have chosen to wait for new, clearer evidence of subsequent corporate earnings announcements, "said Yasuo Sakuma, chief investment officer at Libra Investments.

Indeed, the turnover of the main board of the Tokyo Stock Exchange was moderate at 1.93 trillion yen ($ 17.9 billion), against a daily average of 2.35 trillion yen over the course of the year. past year. The earnings season for Japanese companies in the April-June quarter will begin in the middle of next week.

Wall Street shares rose overnight, with comments from New York Fed Chairman John Williams helping to shape expectations for interest rate cuts at the end of the month.

Taiwan's Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the chip sector in Japan, grew by 7.1%, Tokyo Electron Ltd by 3.5% and Disco Corp by 4.2%.

TSMC, the world's largest chip maker and supplier to Apple, said Thursday a decline in profits in the second quarter, but believes that demand should recover over the rest of the year, especially from smartphone manufacturers.

Japan Post Holdings Co. Ltd. dropped 0.8% to its all-time low after the Nikkei business newspaper reported that Japan's biggest private insurance company, Nippon Life, had asked Japan Post to stop selling its policies in its affiliated post offices.

Japan Post, which previously belonged to the state, and its affiliates have been the subject of close scrutiny in recent weeks for the sale of insurance policies and products of toshin fund.

Moreover, Akebono Brake Industry Co Ltd. has extended its stellar gains of 20.0%, a day after the struggling auto parts maker announced that it would receive about $ 185 million from a fund. business turnaround to help restructure his business into a loss of money.

The broader Topix rose 1.9% to 1.563.96.