Nikkei rises to fresh 15-year high; drugmaker Eisai soars after upgrade
Eisai jumps 20% on Barclays' rating hike citing Alzheimer's drug hope; Nikkei's 20,000 in sight near term, say analysts
Tokyo: Japan’s Nikkei share average rose to a fresh 15-year high on Monday, tracking gains in US shares, while Eisai Co. Ltd jumped over 20% after a brokerage upgraded the stock, citing the effectiveness of its drug to treat Alzheimer’s disease.
Eisai soared to a record high of ¥8,748 after Barclays raised its stock rating to ‘overweight’ from ‘equalweight’. It was the second most traded stock by turnover, and contributed a hefty 60 positive points to the Nikkei benchmark.
According to a report obtained by Reuters, Barclays said that the results of a Phase Ib study on Alzheimer’s diseases treatment drug BIIB037 were announced at an industry conference in Nice, France, over the weekend.
By mid-morning, the Nikkei was up 1.1% to 19,772.47, its highest intraday level since April 2000.
The benchmark has gained 13% so far this year, outperforming other markets such as US shares, whose S&P 500 index has gained 2.3% during the same term.
While the softer yen is no longer providing as much catalyst for Japanese stocks, optimism over a steady recovery in the economy, improved corporate earnings and better shareholder returns have stoked demand for Japanese shares.
“Sentiment for Japanese stocks has been positive, and the 20,000-mark is in sight in the short-term," said Isao Kubo, equity strategist at Nissay Asset Management.
“When it is nearing the end of the fiscal year, hopes for stronger full-year earnings also buoyed the mood." Sharp Corp. soared 4.2% to a 1-1/2-week high after Taiwan’s Hon Hai Precision Industry said it is considering joining efforts to help rescue the struggling electronics goods maker.
Exporters were mixed. Toyota Motor Corp. added 1.2%, and Honda Motor Co added 0.6% and Tokyo Electron Ltd shed 0.2%. The broader Topix gained 0.8% to 1,592.80, and the JPX-Nikkei Index 400 advanced 0.8% to 14,473.20. Reuters
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!