Japan’s Nikkei ends up on hopes of an economic rebound; Eisai drags Topix
TOKYO, June 10 (Reuters) – Japan’s Nikkei index closed higher on Thursday, as shipping companies rose on prospects for more economical reopenings and drugmakers were boosted by reports of support government.
The Nikkei stock average ended up 0.34% to 28,958.56, while the larger Topix was down 0.02% to 1,956.73.
Signs of more savings reopening amid a steady vaccine rollout have bolstered transport companies, with Nippon Yusen jumping 3.65% to be the Nikkei’s biggest winner.
Japan plans to complete the vaccination of all citizens who requested injections by October-November, Prime Minister Yoshihide Suga said on Wednesday during a debate among party leaders.
Eisai fell 7.02% after two days of daily limit gains. US regulators earlier this week approved a drug developed by the company and Biogen for Alzheimer’s disease. For the week, the title has gained 30% so far.
Rival drugmaker Shionogi rose 3.4% following a report in local media that the company plans to mass produce its own COVID-19 vaccines.
Chugai Pharmaceutical gained 1.04% and Ono Pharmaceutical rose 1.5% on a media report that they will receive government grants for their research into COVID-19 drugs.
The Toronto Stock Exchange’s Airline Index hit a 15-month high before falling 0.49% as investors took profits.
“Some people say their rally on economic reopenings would only last about two weeks. Over the past year, that has been the case because we have only been able to contain COVID-19 temporarily,” Fumio Matsumoto said. , chief strategist at Okasan Securities.
“But this time, with the vaccines, I think their rally could last a lot longer, but with twists and turns.”
Meanwhile, DIY store operator Konan Shoji jumped 20% after City Index Eleventh, a Japanese fund backed by veteran activist investor Yoshiaki Murakami, revealed it owns more than 5% of the shares of the company.
(Report by Hideyuki Sano and Junko Fujita, edited by Sherry Jacob-Phillips and Uttaresh.V)