Japan’s Nikkei index rose for a second consecutive day on Monday off the back of a rally by domestic pharmaceutical companies and chip companies. The Nikkei was up 0.52% to 32,434.00 at Monday’s market close; 275 points short of last Wednesday’s 33-year peak of 32,708.53.
Kazuo Kamitani, a strategist at Nomura Securities, is confident that the Nikkei is on track to hit 32,944 points. “We expect the Nikkei to rise in line with the 25-day moving average this week, but while releasing some of its heat,” Kamitani confirmed.
Healthcare stocks posted the largest gains of the day, with the sector rising 1.59% after Eisai’s Alzheimer’s drug Leqembi received unanimous approval from a panel of U.S. Food and Drug Administration (FDA) experts.
Chip-related shares also rallied, with chip-testing equipment maker Advantest gaining 2.89% and chip manufacturer Renesas Electronics climbing 1.85%. Tokyo Electron went up 0.24%.
Exports were assisted by the weakening of the yen to 140 per dollar. Toyota Motor edged 0.85% higher, while Honda gained 1.13%.