INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei rose to more than two-week highs on Friday, buoyed by a weaker yen and gains in pharmaceuticals after a report that
drugmaker Eisai moved forward its mid-term profit goal by one year.
The Nikkei share average ended 0.9 per cent higher at 22,601.77 points,
the highest closing level since Aug
For the week, the benchmark index soared 1.5 per cent, snapping a three-week losing streak.
The weaker yen triggered futures buying in late
trade.
The dollar comfortably stayed above 111 yen, after gaining nearly 0.7 per cent against the Japanese currency after the US Federal
Reserve's minutes showed officials discussed raising rates soon.
"As you can see that seasonal thin trade still continues, today's market
was mainly supported by futures buying," said Yutaka Miura, a senior technical analyst at Mizuho Securities.
The broader Topix advanced 0.7
per cent to 1,709.20, with only 983.8 million shares changing hands, compared to last week's daily average of 1.3 billion shares.
Eisai Co
surged 2.7 per cent, after the Nikkei business daily reported that the drugmaker is expected to post an operating profit of 102 billion yen
($923.16 million) in the year ending March 2020, moving one year forward its mid-term business plan.
Other drugmakers followed suit
Chugai Pharmaceutical surged 2.4 per cent and Daiichi Sankyo added 2.8 per cent.
The pulp and paper products sector also attracted buyers
Oji Holdings soared 3.7 per cent to 739 yen after SMBC Nikko Securities raised its target price to 940 yen from 880 yen saying that strength
in cardboard box prices and pulp prices will likely to continue midterm.
Nippon Paper Industries gained 1.7 per cent.
On the other hand,
Shimamura Co tumbled 3.7 per cent after its August same-store sales dropped 5.6 per cent on the year as typhoons kept shoppers at home,
falling for a four consecutive month.
Meanwhile, as expected, Sino-US trade talks ended on Thursday with no major breakthrough as the two
sides escalated their trade war, activating more tariffs on each country's goods.
Many trade-reliant Asian economies are worried they will
suffer collateral damage if the dispute drags on and disrupts Chinese demand.
"The market knew that there would not be a solution proposal
out of the low-level talks this time, so we can say that it was somewhat expected," said Hikaru Sato, a senior technical analyst at Daiwa
Securities.
Analysts said that investors' focus has shifted to a speech by Federal Reserve Chairman Jerome Powell later in the day at an
annual meeting of central bankers in Jackson Hole, Wyoming
Markets are looking for clues on the extent of further interest rates rises
