Nikkei 225 Gains 1% on Merck Covid-19 Drug Application

The Nikkei 225 opened lower on Friday but rallied in the afternoon, finishing up 1% after drugmaker Merck MRK applied to the nation's health ministry for a license to sell its oral medication to treat COVID-19 symptoms. Traders also bargain-hunted after recent declines on concerns regarding the omicron variant of the coronavirus.

The benchmark Nikkei 225 rose 276.20 to 28,029.57, as gaining issues outnumbered losers 210 to 15. The Nikkei 225 is up 2.1% year-to-date.

Leading the upside were shipping line Kawasaki Kisen Kaisha (KAKKF, 9107), up 13%, followed by heavy-equipment maker IHI (IHICY, 7013), up 6%, and then ad-PR agency Dentsu (DNTUF, 4324), up 5.6%.

On the downside were game-maker Nintendo (NTDOY, 7974), off 2%, and then FUJIFILM (FUJIY, 4901), off 1.5%.

In other news, the seasonally adjusted au Jibun Japan Services Business Activity Index rose to 53.0 in November from 50.7 in October, signaling the strongest business expansion of the sector in 27 months, reported the bank. Readings above 50 on the index indicate a sector in expansion, while below 50 points to contraction.

Separately, the au Jibun Bank Japan Composite Purchasing Manager's Index Output Index rose to 53.3 in November from 50.7 in October, also "signaling a stronger rise in private sector output," the bank said. The composite is a combination of the manufacturing and services sectors PMIs.