Nikkei secures all-time closing high as pharma excels

Kawasaki Heavy Industries

26/02/2024 06:43

(Updated with closing levels and details)
    By Brigid Riley
       TOKYO, Feb 26 (Reuters) - Japan's Nikkei share average
scaled to record highs for the second consecutive session on
Monday, supported by upbeat performances in pharmaceuticals,
although profit-taking limited the momentum in the market rally.
    The Nikkei  .N225  ended 0.35% higher at a new closing high
of 39,233.71. The index eased from an all-time peak of 39,388.08
earlier in the session after the market resumed trade following
a holiday on Friday. 
        The newest record comes after the index on Thursday
breached levels last seen in 1989 during the halcyon days of the
bubble economy. 
        The broader Topix  .TOPX  finished 0.5% higher at
2,673.62.  
    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.
    With the decades-old record-high level broken, traders were
also looking for the next milestone, with the 40,000-point mark
emerging as a likely target level.
    The Nikkei got a boost as the S&P 500 and Dow Jones
Industrial Average, which are closely tracked by Japanese
investors, ended at record highs on Friday.
    The pharmaceutical sector outperformed, with the Topix
sub-index  .IPHAM.T  up 2.5% on Monday. 
        Pharma giant Chugai Pharmaceutical  4519.T  rose 6.37%
to lead the gains, while Daiichi Sankyo  4568.T  climbed 3.86%.
    "There's a sense that traders are picking out shares that
are running behind and haven't been bought as much," said
Hiroshi Namioka, chief strategist at T&D Asset Management.
    Gains narrowed in the afternoon session as traders locked in
profits after the recent rally, with 121 of the Nikkei's 225
constituents advancing against 102 decliners.
    Shares of technology-related companies, which helped lift
the Nikkei on Thursday on the back of an upbeat revenue outlook
by U.S. chipmaker Nvidia, retreated from recent highs. 
    Screen Holdings  7735.T  fell 3.49%, Lasertec Corp  6920.T 
lost 2.15% while Tokyo Electron  8035.T  was down 1.59%.
    
   

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