Updated February 26th, 2024 at 09:39 IST

Nikkei hits new high on pharma sector boost

The Nikkei rose 0.54% to 39,309.80 by midday, peaking at 39,388.08 following Friday's holiday break.

Reported by: Business Desk
Nikkei | Image:Shutterstock
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Nikkei at record high: Japan's Nikkei share average reached a record high on Monday, buoyed by strong performances in the pharmaceutical sector. Market sentiment remained positive after the index surpassed its 1989 peak last week.

The Nikkei rose 0.54 per cent to 39,309.80 by midday, peaking at 39,388.08 following Friday's holiday break. 

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The broader Topix also climbed 0.84 per cent to 2,683.08.

Japanese stocks have surged due to attractive valuations and corporate reforms, attracting foreign investors seeking alternatives to volatile Chinese markets. 

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The index has gained 16.8 per cent year-to-date.

The Nikkei received additional momentum from record highs in the S&P 500 and Dow Jones Industrial Average, closely monitored by Japanese investors.

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Market gains were widespread, with 136 of the Nikkei's 225 constituents advancing. Hiroshi Namioka, chief strategist at T&D Asset Management, noted a trend of traders targeting less-purchased shares within the overall uptrend.

The pharmaceutical sector notably outperformed, with the sub-index  rising over 2 per cent. Major firms like Chugai Pharmaceutical and Daiichi Sankyo saw gains of 4.41 per cent and 3.42 per cent, respectively.

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However, shares of technology-related companies retreated from recent highs, with Screen Holdings Co Ltd down 2.59 per cent and Lasertec Corp losing 2.46 per cent. Sony Group Corp also dipped 2.33 per cent.
 

(With Reuters Inputs)

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Published February 26th, 2024 at 09:39 IST