Japan`s Topix posts record-high close despite US tariffs on pharma

Published on 09/26/2025 at 02:48 am EDT
(Reuters) - Japan's broad Topix index closed at an all-time high on Friday, despite pressure from pharmaceutical shares following new tariffs on the sector from the White House overnight.
The tech-heavy Nikkei index, however, retreated sharply from the record-high close seen on Thursday, as chip-sector shares echoed a downbeat overnight performance among U.S. peers.
The Topix ended up 0.05% at 3,187.02, after earlier reaching an unprecedented 3,205.63.
The Nikkei, by contrast, dropped 0.9% to finish at 45,354.99, after closing at 45,754.93 in the prior session.
Pharma was near the bottom of the Tokyo Stock Exchange's 33 industry groups with a 1.4% decline.
However, market reaction varied widely within the sector to U.S. President Donald Trump's announcement of 100% tariffs on imports of branded or patented pharmaceutical products from October 1.
The implications were further complicated by Japanese tariff negotiator Ryosei Akazawa's assertion that the country has secured most-favoured nation status on chip- and drug tariffs.
Chugai Pharmaceutical tumbled 4.8%, Sumitomo Pharma dropped 3.5% and Otsuka Holdings slid 2.9%, although Takeda finished just 0.1% lower and Shionogi gained 1%.
Jefferies analyst Stephen Barker said while he thought it highly unlikely that Trump's announcement would lead to "onerous" tariffs on Japan's pharma industry, investors naturally can't ignore the risks.
The discrepancy in the share performance of Sumitomo Pharma and Takeda is likely the result of their communication strategies, Barker said.
"Takeda has been very vocal about locally manufacturing most of what it sells in the United States," he said.
"Sumitomo Pharma has been less transparent, and there is the suspicion that they are exporting drugs from Switzerland."
For the Nikkei, a sharp drop among chip-related shares weighed more heavily, with Lasertec plunging 8.4%, Sumco sliding 7.5% and Disco dropping 7.1% to lead declines among stocks in the index.
Sumitomo Mitsui DS Asset Management strategist Masayuki Kichikawa remains bullish on the outlook for Japanese equities, citing relatively healthy economic fundamentals in Japan, and relatively reasonable valuations compared to Wall Street and many other markets.
"Obviously, when the U.S. tech sector experiences a correction, Japanese equities are not immune, but they should show some resilience," Kichikawa said.
"Japanese shares are not cheap, but they are more resonably priced compared with the U.S."
 (Reporting by Kevin Buckland; Editing by Sherry Jacob-Phillips) 

Sumber : Reuters