Latest news with #TokyoElectron
Business Standard
5 days ago
- Automotive
- Business Standard
Japanese markets ends at 6-month high
Japanese markets ended at a six-month high amid hopes the U.S. will extend the deadline for reciprocal tariffs. The Nikkei average jumped 1.43 percent to 40,150.79, marking its highest closing level since December 27. The broader Topix index settled 1.28 percent higher at 2,840.54. Technology stocks followed their U.S. peers higher, supported by positive news around easing tensions in the Middle East and expectations for Fed rate cuts this year. Tokyo Electron surged 4.3 percent and SoftBank Group rallied 2.5 percent. Defense-related Kawasaki Heavy Industries soared 6.2 percent on expectations of increased defense spending in the country. Automakers Honda, Toyota and Nissan all gained around 3 percent, tracking a weaker yen as Tokyo's CPI data for June 2025 revealed a milder inflation trajectory than anticipated.
Al Etihad
6 days ago
- Business
- Al Etihad
Asian shares mixed ahead of US personal consumption expenditures data
27 June 2025 14:12 Beijing (dpa-AFX)Asian stocks ended mixed on Friday despite US President Donald Trump announcing a trade deal with China on rare earths and hinting at a major upcoming deal with India. The ceasefire between Iran and Israel continued to hold, and weak US data fuelled rate cut hopes, helping limit regional dipped over 1% below $3,300 per ounce, and the dollar index hovered near its lowest level since March 2022 ahead of the US May personal consumption expenditures (PCE) price index data due later in the session. Oil was on track for its worst weekly loss since March as supply concerns Shanghai Composite index fell 0.70% to 3,424.23 as new data showed China's industrial profits fell 9.1% year on year in the first five months of the year in the face of deepening deflationary pressures and a persistent property crisis. Hong Kong's Hang Seng index finished 0.17% lower at 24,284.15 after a White House official said the United States has reached an agreement with China on how to expedite rare earth shipments to the US. Japanese markets ended at a six-month high amid hopes the US will extend the deadline for reciprocal tariffs. The Nikkei average jumped 1.43% to 40,150.79, marking its highest closing level since December 27. The broader Topix index settled 1.28% higher at 2,840.54. Technology stocks followed their US peers higher, supported by positive news around easing tensions in the Middle East and expectations for Fed rate cuts this year. Tokyo Electron surged 4.3%, and SoftBank Group rallied 2.5%. Defence-related Kawasaki Heavy Industries soared 6.2% on expectations of increased defense spending in the country. Automakers Honda, Toyota, and Nissan all gained around 3%, tracking a weaker yen as Tokyo's CPI data for June 2025 revealed a milder inflation trajectory than anticipated. Australian markets gave up early gains to end in the red. Banks fell, offsetting gains in the mining sector. The benchmark S&P/ASX 200 dipped 0.43% to 8,514.20, while the broader All Ordinaries index closed 0.34% lower at 8,743.60. US stocks rose overnight as White House spokeswoman Karoline Leavitt downplayed the importance of July's tariff deal deadlines. In economic news, sales of durable goods came in well above expectations in May. Jobless claims came in below expectations last week, but continuing claims hit a 2.5-year high. Revised data showed real US GDP fell at an annual rate of 0.5% in the first quarter of 2025, a downgrade from the previous estimate of a 0.2% decline and marking its worst quarterly performance since early 2023. The tech-heavy Nasdaq Composite rallied 1%, and the S&P 500 climbed 0.8% to end the day just shy of their record closing highs on Fed rate cut hopes. The narrower Dow advanced 0.9%. Stock Markets Continue full coverage
Japan Times
6 days ago
- Business
- Japan Times
Tokyo Electron shrugs off fears of Chinese rivals catching up
Tokyo Electron is on course to widen its lead against Chinese chip tool makers despite the billions of dollars Beijing is mobilizing to catch up, according to the Japanese company's chief. Toshiki Kawai shrugged off concerns about rising competition from China, adding that investors haven't adequately priced in Tokyo Electron's leadership in making machines that help process silicon into artificial intelligence chips. Technology at the Japanese company, whose main competitor is Applied Materials, is advancing at a pace that's faster than its Chinese rivals', due in part to close collaboration with contract chipmakers, the chief executive officer said. "We have access to cutting-edge wafers, and our ability to provide cutting-edge process technology will become overwhelmingly faster than Chinese makers,' Kawai said in an interview. "Because we have such a strong lineup of products, Tokyo Electron can be in alignment with a technology roadmap that spans 10 years alongside the world's leading device makers.' That roadmap covers roughly four generations of chip processing technology and represents significant potential for further growth as the pace of innovation accelerates, he said. "The gap will continue to widen.' Kawai's confidence is in the face of a national push in China to work around U.S.-led export restrictions on chipmaking knowhow. China's Advanced Micro-Fabrication Equipment, Naura Technology Group and Shanghai Micro Electronics Equipment Group are spending heavily to develop cutting-edge chip equipment. That's while customers like Semiconductor Manufacturing International and Hua Hong Semiconductor have been buoyed by pressure from Beijing on its tech sector to source more chips from domestic manufacturers. To maintain its leadership, Tokyo Electron plans to invest ¥1.5 trillion ($10.5 billion) in research and development and hire 10,000 engineers over the next five years — or about 2,000 every year — to bring up the total number of employees to more than 30,000. More than 25,000 college graduates applied for 500 positions this year. The company's shares remain weighed down by fears about rising competition and its exposure to China, however. A series of U.S.-led measures to limit China's ability to obtain chip gear and services are making investors fearful that the Tokyo company — which earned almost half of its revenue in China at one point last year — may suddenly be forced to halt its business with Chinese customers, Bloomberg Intelligence analyst Masahiro Wakasugi said. Tokyo Electron's shares are down around 25% from a year ago. "We are not at all satisfied with our current market cap,' Kawai said, adding that the company targets a dividend payout ratio at more than 50% and plans to implement flexible share buybacks. Tokyo Electron was among the top five most valuable companies on the Tokyo Stock Exchange during most of April last year. The company would work to regain that standing, he said. Customers investing in an AI hardware boom are more than making up for any declines in China and lowering Tokyo Electron's reliance there, Kawai said. Revenue from China is expected to settle at around 30% of total sales, down from less than 40% in the second half of last fiscal year, he said. The company is on course to hit its target operating profit of at least ¥1 trillion on sales of more than ¥3 trillion revenue by 2027, Kawai said. Tokyo Electron generated ¥697 billion operating profit on revenue of ¥2.4 trillion in the just-ended fiscal year. The company's exposure to potential U.S. tariffs is also limited as it earns just 8% of total revenue from America, and there's no foreign exchange rate fluctuation risks because the company transacts in yen with customers, he said. Nor has demand for chip tools fallen with the emergence of cheaper AI models such as DeepSeek, he said. "Even as various AI solutions emerge, the demands don't change,' he said. "Tokyo Electron is always pursuing the latest cutting-edge technology, so we believe there will be no issues with our growth.'
Business Recorder
6 days ago
- Business
- Business Recorder
Japan's Nikkei ends at 6-month high, tracking Wall Street rally
TOKYO: Japan's Nikkei share average closed at a six-month high on Friday, as technology stocks tracked Wall Street's robust finish overnight. The Nikkei jumped 1.43% to 40,150.79, its highest closing level since December 27. The index rose 4.6% for the week, its sharpest weekly gain since the week of September 23, 2024. The broader Topix rose 1.28% to 2,840.54, gaining 2.5% for the week. 'Investors finally became willing to make long positions on U.S. stocks, underpinned by positive news around easing tensions in the Middle East and expectations for the interest rate cut,' said Takamasa Ikeda, senior portfolio manager at GCI Asset Management. 'Japanese equities mirrored the U.S. trend, led by stocks which are popular among foreign investors.' Overnight, Wall Street finished higher, with the S&P 500 and the Nasdaq just shy of record closing highs as the Israel-Iran ceasefire continued to hold and a raft of economic indicators appeared to support the case for the Federal Reserve lowering borrowing costs this year. In Japan, technology stocks rose, with chip-making equipment maker Tokyo Electron jumping 4.3% to boost the Nikkei the most. Tech start-up investor SoftBank Group rose 2.54%. Japan's Nikkei ends at over 4-month high Defence-related stocks Kawasaki Heavy Industries and Mitsubishi Heavy Industries rose 6.15% and 2.71%, respectively, on expectations of increased defence spending in Japan. Bucking the trend, chip-testing equipment maker Advantest lost 1.07%, weighing the most on the index, as investors booked profits from its more than 40% rise this month. 'Still, the rally on overall IT-related shares will continue. The market is just relocating their targets,' Ikeda said. Of the more than 1,600 stocks trading on the Tokyo Stock Exchange's prime market, 72% rose, 24% fell and 2% traded flat.
Bloomberg
6 days ago
- Business
- Bloomberg
Tokyo Electron Shrugs Off Fears of Chinese Rivals Catching Up
Tokyo Electron Ltd. is on course to widen its lead against Chinese chip tool makers despite the billions of dollars Beijing is mobilizing to catch up, according to the Japanese company's chief. Toshiki Kawai shrugged off concerns about rising competition from China, adding that investors haven't adequately priced in Tokyo Electron's leadership in making machines that help process silicon into artificial intelligence chips. Technology at the Japanese company, whose main competitor is Applied Materials Inc., is advancing at a pace that's faster than its Chinese rivals', due in part to close collaboration with contract chipmakers, the chief executive officer said.
