Japanese Nikkei index closed higher

Japanese Nikkei index reversed its direction to close higher today, Monday, as investors changed their outlook after local companies recorded strong profits, and the share of Estelas Pharmaceutical Company rose after a drug it produced obtained approval from America.

According to Reuters, the Nikkei index rose 0.19% to close at 32,254.56 points, after falling at the beginning of the session, tracking the losses that Wall Street closed last week’s trading. The Nikkei index fell 0.9% to its lowest level since July 12, earlier in the session.

The broader Topix index also stopped the losses it recorded earlier in the session, to close up 0.41%, at 2283.93%.

“The market tracked the declines in the US markets at the end of last week, while investors were not betting heavily on stocks due to their doubts about the yield situation on Japanese government bonds,” said Shuji Hosui, chief strategist at Daiwa Securities Group. Investor sentiment rose after the improvement in the profits of shares of Japanese companies

Investors in Japan were looking for the fair value of the benchmark 10-year government bond after the Bank of Japan surprised the market by setting an effective bond yield ceiling of 1% last month.

Japanese drugmaker Astellas Pharma jumped 10.05%, providing the biggest support for the Nikkei index, after the US Food and Drug Administration approved a drug produced by the company, while its counterpart, Daiichi Sankyo, rose 1.95%.

KDDI Telecom rose 1.06%, and medical equipment maker Trumo rose 1.28%.

Technology stocks negatively affected the Nikkei index, with Tokyo Electron and Advantest falling 1.04% and 1.64%, respectively.