SK Hynix shares hit 16-year-high on hopes for Toshiba chip talks

SEOUL (Reuters) - Shares of SK Hynix extended gains on Wednesday to reach their highest level in more than 16 years after the Nikkei newspaper reported Toshiba Corp has agreed to step up talks to sell its chip business to a group including Bain and the South Korean chipmaker.

The shares were last trading 3.5 percent higher.

SK Hynix is also expected to post record earnings in the third and fourth quarter, boosted by strong chip prices.

(Reporting by Dahee Kim and Hyunjoo Jin; Editing by Edwina Gibbs)