Japan stock market week to Oct 23, 2006

Tokyo saw a further advance in the week ended October 23 following a see-saw movement. The Nikkei 225 gained 0.6% to close at the 16,700 level, the highest in five months, while the Topix index ended 0.8% higher. The market strengthened toward the weekend, helped by a solid New York market which climbed to a historic high. Another factor which pushed up the Tokyo market is the expectation for Japanese companies' upward revisions of full-year earnings projections with the forthcoming announcement of first-half results. Investors showed keen buying interests in technology-oriented blue chips and domestic economy-related issues such as real estate development companies.

The pharmaceutical index rose 1.3%, outperforming the market. Shionogi advanced 10.1%, reflecting that it had received approval for Oxinorm (oxycodone HCl hydrate), an immediate-release powder analgesic in-licensed from Mundispharma of the Netherlands, for cancer pain. The company plans to launch the product in February 2007. Its share action was also supported by the significant finding of a large-scale clinical trial in Japan for the treatment of hypertension in elderly patients involving the calcium blocker anti-hypertensive drug Landel (efonidipine HCl) marketed by Shionogi. The study, JATOS (The JApanese Trial to Assess Optimal Systolic Blood Pressure in Elderly Hypertensive Patients) demonstrated the importance of blood pressure and managing risk factors in elderly patients.

Astellas closed 5.1% higher, reacting to the approval by the review committee of the Council on Drugs and Food Sanitation of celecoxib (YM177, cyclooxygenase-II inhibitor), originated by US drug giant Pfizer, for the indication of rheumatoid arthritis and osteoarthritis. Japanese clinical trials showed that celecoxib is equivalent to existing non-steroidal anti-inflammatory agents in terms of their efficacy and safety.