Japan’s Nikkei share average achieves historic highs for the second consecutive session, propelled by an outstanding performance in the pharmaceutical sector. While profit-taking momentarily slows the market rally, the Nikkei eyes the next milestone, with the 40,000-point mark emerging as a probable target level.
Pharma Sector Shines as Nikkei Hits Record Peaks
Buoyed by cheap valuations and successful corporate reforms, Japanese stocks, particularly the Nikkei, have experienced a surge, attracting foreign investment seeking alternatives to volatile Chinese markets. The index has seen a remarkable 16.8% gain this year, with the pharmaceutical sector leading the charge with a 2.5% increase on Monday.
Profit-Taking Temporarily Curbs Nikkei’s Momentum
As traders engage in profit-taking following the recent rally, the Nikkei’s momentum encounters a brief slowdown. However, with the breaking of decades-old record highs, market participants are now setting their sights on the 40,000-point mark as the next significant target level.
Technology Shares Retreat After Initial Boost
Technology-related companies, instrumental in lifting the Nikkei last week due to positive revenue outlooks, experience a retreat from recent highs. Despite the temporary dip, the overall market sentiment remains positive, with eyes on potential future milestones.