Nikkei extends record rally on pharma boost

Kawasaki Heavy Industries

26/02/2024 03:54

(Updates share prices, adds background and comments)
    By Brigid Riley
       TOKYO, Feb 26 (Reuters) - Japan's Nikkei share average
scaled a record high on Monday, supported by upbeat performances
in pharmaceuticals, as market sentiment continued to run high
after the benchmark index broke the 1989 all-time peak last
week.
    The Nikkei  .N225  was up 0.54% at 39,309.80 by the midday
break. The index climbed as high as 39,388.08 to secure an
all-time peak after the market resumed trade following a holiday
on Friday. 
    The broader Topix  .TOPX  was up 0.84% at 2,683.08.  
    The new high comes after the index on Thursday breached
levels last seen in 1989 during the halcyon days of the bubble
economy. 
    Japanese stocks have surged on the back of cheap valuations
and corporate reforms, which have succeeded in luring back
foreign money looking for alternatives to battered Chinese
markets. The index has gained 16.8% so far this year.
    The Nikkei got further momentum as the S&P 500 and Dow Jones
Industrial Average, which are closely tracked by Japanese
investors, ended at record highs on Friday.
    Gains were relatively broad on Monday, with 136 of the
Nikkei's 225 constituents advancing against 87 decliners.
    "The overall market is in an uptrend, but within this
uptrend ... there's a sense that traders are picking out the
shares that are running behind and haven't been bought as much,"
said Hiroshi Namioka, chief strategist at T&D Asset Management.
    The pharmaceutical sector outperformed, with the sub-index
 .IPHAM.T  up more than 2%. 
    Big pharma firms Chugai Pharmaceutical  4519.T  and Daiichi
Sankyo Co Ltd  4568.T  were up 4.41% and 3.42%, respectively.
    Shares of technology-related companies retreated from recent
highs, with Screen Holdings Co Ltd  7735.T  down 2.59%, followed
by Lasertec Corp  6920.T  losing 2.46%. Sony Group Corp  6758.T 
was down 2.33%.
    
   

 (Reporting by Brigid Riley; Editing by Subhranshu Sahu and
Sherry Jacob-Phillips)
 ((brigid.riley@thomsonreuters.com;))