Nikkei edges up on chips, domestics hit

Tokyo, Nov 17: The Nikkei average edged up 0.3 percent on Friday as Tokyo Electron Ltd. and other chip stocks rose after data showed increased global demand for their products, but concern about Japan's economic strength weighed on banks such as Mizuho Financial Group Inc.

Shares of Mercian Corp. were untraded, flooded with buy orders after Kirin Brewery Co. said it would buy a controlling stake in the wine maker to expand beyond Japan's shrinking beer market.

Data from an semiconductor industry group on Thursday showed sales of chip-making equipment rose 23.2 percent in September from a year earlier.

That boosted some chip stocks, said Katsuhiko Kodama, senior strategist at Toyo Securities.

''I think we can have positive expectations for Tokyo Electron and similar stocks going forward,'' Kodama said.

But lingering concern about the strength of Japan's economy was preventing a larger advance, he said.

''Investors are worried about an economic slowdown.... Right now it is difficult to get a clear picture of where the economy is headed.'' Gross domestic product data on Tuesday showed that Japan's economy expanded 0.5 percent in the three months to September, compared with the preceding quarter. However, consumption fell in the same period.

The Nikkei was up 54.85 points at 16,218.72 as of 0103 GMT. The broader TOPIX was up 0.09 percent at 1,583.54.

Tokyo Electron rose 1.5 percent to 8,820 yen, becoming the biggest contributor to the Nikkei's rise.

Advantest Corp. gained 0.7 percent to 6,150 yen.

Shares of Mizuho Financial and some other firms that rely on the domestic economy declined. Mizuho declined 0.6 percent to 851,000 yen.

Shares of wine maker Mercian were untraded, facing a flood of buy orders at 327 yen, up 25 percent from Thursday's closing price.

Kirin said on Thursday it would pay 370 yen per Mercian share. It aims to buy 67 million shares, giving it a 51 percent stake in terms of voting rights.

Kirin rose 4 percent to 1,610 yen.

Reuters