INSUBCONTINENT EXCLUSIVE:
TOKYO: Japanese stocks rose slightly on Monday as the early approval of a cancer drug and an improved earnings outlook boosted the
healthcare sector in thin trade ahead of the Christmas and New Year holidays.
Shares in the consumer staples sector also rose due to hope of
a pick-up in spending during the year-end shopping season.
The Nikkei index ended up 0.02 per cent at 23,821.11
It has risen 19 per cent so far this year.
The healthcare sector extended recent gains after the United States Food and Drug Administration
on Friday approved a drug from Daiichi Sankyo Co Ltd and AstraZeneca PLC to treat an advanced form of breast cancer, three months ahead of
schedule.
AstraZeneca in March signed a licensing and collaboration deal that committed the British drugmaker to pay up to $6.9 billion to
its Japanese partner Daiichi Sankyo.
"The pharmaceutical sector has been strong recently," said Kiyoshi Ishigane, chief fund manager at
Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.
"You can't really say it is a defensive play, but at the same time the sector has risen
so much that I would be wary of chasing the upside from here."
Sentiment also remained positive after United States President Donald Trump
reiterated over the weekend that Washington and Beijing are on track to sign a so-called phase one trade deal that will delay additional
United States tariffs on Chinese goods in exchange for large purchases of United States agricultural products.
However, some traders said
the deal would not eliminate the potential for additional clashes between the United States and China over trade and foreign policy, which
could continue to unsettle the global outlook.
There were 69 advancers on the Nikkei index against 153 decliners on Monday.
The largest
percentage gainers were Daiichi Sankyo, up 2.84 per cent, followed by retailer Aeon Co Ltd, gaining 2.77 per cent, and Internet services
company Z Holdings Corp, up 2.76 per cent.
The largest percentage losers were Nippon Sheet Glass Co Ltd , down 6.82 per cent, followed by
shipbuilder Mitsui E-S Holdings Co Ltd, down 3.56 per cent, and construction and engineering firm JGC Holdings Corp, losing 3.21 per
cent.
In mergers-and-acquisitions activity, shares of Unizo Holdings Co Ltd rose 5.31 per cent after the hotel chain on Sunday said it had
received a friendly buyout offer from United States investment fund Lone Star.
The offer could end a five-month takeover battle involving
Blackstone Group Inc, Fortress Investment Group and activist investor Elliott Management.
The broader Topix index fell 0.21 per cent to
1,729.42.
The volume of shares traded on the Tokyo Stock Exchange's main board was 0.96 billion, compared with the average of 1.21 billion