Nikkei rises as pharma stocks gain on hopes of existing vaccines working on new virus strain

By Stanley White
TOKYO, Dec 23 (Reuters) - Japan's Nikkei share average edged
up on Wednesday, with healthcare leading gains after drugmakers
said the existing vaccines were likely to be effective against
the new coronavirus variant, while technology shares rose as
Apple Inc eyed a shift to electric cars.
The Nikkei 225 Index .N225 rose 0.24% to 26,498.78 by 0200
GMT, while the broader Topix .TOPX fell 0.03% to 1,760.53.
Pharmaceuticals .IPHAM.T rose 1.02% after drugmakers said
they expected the vaccines they have already developed are
effective on the new variant that swept through Britain and will
conduct tests to confirm this. Healthcare shares have benefited from the coronavirus
outbreak due to increased demand for treatments but the broader
impact on the global economy has been very damaging, keeping
investors on edge.
"Buying in healthcare and selling of shares that are more
sensitive to the economy shows that investors are becoming more
defensive," said Takashi Hiroki, chief strategist at Monex
Securities.
Information and communications stocks .ICOMS.T rose 0.16%
after the Nasdaq .IXIC closed at a record high overnight due
to signs that Apple Inc AAPL.O is moving ahead with the
production of electric vehicles. Top gainers among the top 30 core Topix names were Daiichi
Sankyo Co Ltd 4568.T and Kao Corp 4452.T rising 2.81% and
1.39%, respectively.
However, financials and raw materials companies fell,
showing lingering caution.
The top underperformers among the Topix 30 were Honda Motor
Co Ltd 7267.T , down 2.43%, followed by SoftBank Group Corp
9984.T , losing 1.79%.
Japanese automakers took a hit after a local media report
that the government would set a goal of banning new sales of
gasoline-powered cars by the mid 2030s.
There were 80 advancers on the Nikkei index against 142
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.44 billion, compared to the average of
1.33 billion in the past 30 days.