NIKKEI RISES ON GAINS IN PHARMACEUTICALS AND WEAKER YEN
The Nikkei225 advanced to a more than two-week high on Friday, supported by a weaker Yen and gains in Pharmaceuticals. Nikkei 225 ended up 0.85% at 22601.77-the highest closing since August 8.For the week the benchmark gained 1.5%, snapping a three-week losing streak.
The pharmaceutical sector advanced after Drugmaker Eisai climbed 2.7% amid local reports that the company is set to reach its mid-term business-plan profit target a full year ahead of schedule, through funds obtained from a Merck partnership to market a cancer drug in Europe.
Other drugmakers also followed the same track. Daiichi Sankyo added 2.8% and Chugai Pharmaceutical surged 2.4%.
The pulp and paper products sector also attracted buyers and rose 2.7%. Oji Holdings rose 3.7% 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.
Contrarily, Shimamura Co fell 3.7% after its August same-store sales dropped 5.6 percent on the year as typhoons kept shoppers at home, falling for a four consecutive month.
The US dollar is currently trading at 111.150 yen, after gaining nearly 0.7 percent against the Japanese currency after the U.S. Federal Reserve’s minutes indicated a possible hike in interest rates in the coming month.
On the technical front, the RSI is currently at 57.66% and suggests that the market can move in the upward direction. The %K has crossed the %D from below to the upside at 38.49% and suggests that the market may head downwards. The current price is above the MA20 .So, overall the market setup seems to be positive.
Trade Suggestion-Limit Buy At: 22530, Take Profit At: 22615 Stop Loss At: 22487