TOKYO, Jul. 14, 2010 (Kyodo News International) -- (Editors: ADDING DETAILS AND PRICES) Japan's key Nikkei stock index surged nearly 3 percent to a nearly three-week high Wednesday as an overnight jump on Wall Street boosted investor sentiment and a stronger-than-expected earnings report from bellwether Intel (NASDAQ:INTC) Corp. benefited high-tech shares. Ending at the highest level since June 24, the 225-issue Nikkei Stock Average advanced 258.01 points, or 2.71 percent, from Tuesday to 9,795.24. The broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 16.34 points, or 1.91 percent, to 870.73, nearly a three-week closing high. Stocks gained broadly, tracking the tone set overnight as U.S. stocks rose sharply with the Dow Jones Industrial Average ending Tuesday more than 1 percent higher for the sixth straight trading day of gains, brokers said. The Nikkei traded briefly above 9,800 for the first time since June 24. Adding to the momentum were Intel's robust second-quarter earnings results and forecasts released after Wall Street closed. After U.S. aluminum maker Alcoa Inc.'s strong earnings, the report from Intel came a time when investors were worried about the strength of the U.S. and global economies. ''It is Intel that sent (Tokyo) stocks higher,'' said Masumi Yamamoto, market analyst at Daiwa Securities Capital Markets Co., adding that the company's earnings results and forecasts were ''positive'' for the market. All 33 sectors on the TSE rose, with the sea transport sector being the biggest winner, followed by the transport equipment and air transport sectors. The Intel effect sent shares of chipmakers and electronics sharply higher. Semiconductor testing device maker Advantest surged 108 yen, or nearly 6 percent, to 2,013 yen, and semiconductor maker Tokyo Electron climbed 200 yen, or some 4 percent, to 5,110 yen. Elpida Memory rose 50 yen, or more than 3.5 percent, to 1,459 yen. Construction maker Komatsu shined after revising upward its earnings forecasts for the business year through next March on Tuesday. The stock jumped 92 yen, or more than 5 percent, to 1,790 yen. A weaker yen against the dollar and the euro, which boosts Japanese exporters' overseas profits when repatriated, was also behind the strong performance of Tokyo stocks, brokers said. The dollar was trading around the 89 yen line, and the euro stayed around the 113 yen line. Hideaki Higashi, assistant manager at SMBC Friend Securities Co., said the receding of pessimism about the global economy and concerns about the fiscal problems in Europe worked positively for stocks. ''We have (strong earnings from) Alcoa and Intel and a ratings cut (Tuesday) of Portugal did not have an impact on the market, so the mood is for taking on risk,'' Higashi said. ''From now, eyes are on other earnings reports, including those from U.S. financial institutions, and the results (due out later next week) of 'stress tests''' to gauge the health of European banks. Brokers said the Nikkei could rise toward the psychologically important 10,000 line, with the focus on key U.S. and Chinese economic data due out this week. More than 80 percent of the stocks on the First Section gained, with advancing issues outnumbering declining ones 1,418 to 162, and 93 others remaining unchanged. Mizuho Financial Group, the day's value and volume leader, dominated activity in the market, climbing 4 yen, or nearly 3 percent, to 139 yen after Tuesday's announcement that the price of its planned share offering later this month was set at 130 yen per share. The stock had been falling sharply in recent sessions prior to the price fixing. Trading volume was up on the main section to 2,302.51 million shares from Tuesday's 1,877.20 million. The TSE's Second Section index rose 8.83 points, or 0.41 percent, to 2,157.97 on a volume of 15.27 million shares. On the Osaka Securities Exchange, the near-term September Nikkei 225 index futures contract jumped 260 points to 9,790.

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