Japanese Shares Track Nasdaq Higher, Drug Makers Shine

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Japanese shares closed higher on Tuesday, buoyed by technology and growthoriented stocks following a strong finish on the Nasdaq overnight, while drug makers extended their gains.

The Nikkei jumped 0.96 to 29,441.30, posting its biggest gain since late May, while the broader Topix rose 0.8 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 U.S. Federal Reserves twoday policy meeting due to start later in the day.

Todays 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 COVID19 vaccine rollouts have been smooth and accelerated.

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

Eisai shares have been volatile since the companys Alzheimers drug, developed in partnership with Biogen Inc, got a nod from U.S. regulators last week. The U.S. Food and Drug Administration is facing mounting criticism over the drug approval.

Takeda Pharmaceutical, which is handling the supply of Novavaxs COVID19 vaccine in Japan, rose 1.69 after clinical tests showed the U.S. firms vaccine candidate is more than 90 effective against a variety of variants of the virus.

Tokyo Electron, a…

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