Japan stocks end higher on gains in drugmakers, tech stocks

Kao

23/12/2020 06:59

By Stanley White
    TOKYO, Dec 23 (Reuters) - Japanese stocks ended higher on
Wednesday as investors bet the healthcare sector would continue
to benefit from a prolonged battle with the coronavirus, while
technology shares rose on signs that Apple was eying an entry
into electric cars.
    The Nikkei 225 Index  .N225  rose 0.33% to 26,524.79, while
the broader Topix  .TOPX  rose 0.23% to 1,765.21.
    Pharmaceuticals  .IPHAM.T  rose 0.9% on hopes for better
earnings after Mizuho Securities raised its price target for
Daiichi Sankyo Co Ltd  4568.T  and as the spread of a more
contagious COVID-19 strain in Britain sparked expectations of
longer battle with virus. 
    The healthcare sector has benefited from the pandemic due to
increased demand for treatments, although the virus outbreak's
broader impact on the global economy has kept investors on edge.
 
    "People are buying (those) stocks on dips that they expect
to lead growth as they try to anticipate what will happen next
year," a dealer at a domestic broker said. 
    Electronic parts makers  .IELEC.T  and information and
communications stocks  .ICOMS.T  rose 0.8% and 0.03%,
respectively, tracking a record close for the Nasdaq  .IXIC  on
signs that Apple Inc  AAPL.O  was moving ahead with the
production of electric vehicles.  urn:newsml:reuters.com:*:nL1N2J12O7
    Top gainers among the top 30 core Topix names were Daiichi
Sankyo Co Ltd  4568.T  and Keyence Corp  6861.T , rising 2.9%
and 1.9%, respectively. 
    However, financials fell, showing lingering caution.
    The underperformers among the Topix 30 were SoftBank Group
Corp  9984.T  down 2.56%, followed by Honda Motor Co Ltd
 7267.T  losing 2.33%.
    Japanese automakers took a hit after a local media report
that the government would set a goal of banning new sales of
gasoline-powered cars by the mid 2030s.
    There were 80 advancers on the Nikkei index against 141
decliners.
    The volume of shares traded on the Tokyo Stock Exchange's
main board  .TOPX  was 0.89 billion, compared to the average of
1.33 billion in the past 30 days.

 (Reporting by Stanley White; Editing by Rashmi Aich and Aditya
Soni)
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