Tokyo: Shares track Nasdaq higher, drug makers shine

[TOKYO] Japanese shares closed higher on Tuesday, buoyed by technology and growth-oriented stocks following a strong finish on the Nasdaq overnight, while drug makers extended their gains.

The Nikkei jumped 0.96 per cent to 29,441.30, posting its biggest gain since late May, while the broader Topix rose 0.8 per cent to 1,975.48, closing at its highest since early April.

Hopes of global trade recovery and economic reopenings at home underpinned market sentiment, while investors awaited the US Federal Reserve's two-day policy meeting due to start later in the day.

"Today's strong market finish is simply a reaction to the gains in the Nasdaq overnight," said Jun Morita, general manager of the research department at Chibagin Asset Management.

"Investors have regained confidence in the market as Covid-19 vaccine rollouts have been smooth and accelerated."

Drug makers were the top gainers among the Tokyo Stock Exchange's 33 sectors with a rise of 1.65 per cent. Eisai jumped 6.59 per cent, making it the biggest gainer on the Nikkei.

Eisai shares have been volatile since the company's Alzheimer's drug, developed in partnership with Biogen, got a nod from US regulators last week. The US Food and Drug Administration is facing mounting criticism over the drug approval.

Takeda Pharmaceutical, which is handling the supply of Novavax's Covid-19 vaccine in Japan, rose 1.69 per cent after clinical tests showed the US firm's vaccine candidate is more than 90 per cent effective against a variety of variants of the virus.

Tokyo Electron, a leading supplier of chipmaking equipment, advanced 1.68 per cent, while Toyota Motor jumped 1.77 per cent to reach a record high.

Growth stocks led the gains after Nasdaq shares outperformed on Wall Street, with the Topix Growth Index rising 1.09 per cent, compared with 0.53 per cent gains in value shares.

REUTERS