Japanese Pharma Stocks Surge To Record Highs After Market Rout

Japanese pharmaceutical stocks have surged to record highs following a market downturn earlier this month, signaling investor preference for defensive shares amid concerns over slowing global economic growth.

Since the start of July, drugmakers have gained 10%, leading the 33 sectors in the Topix index. I Photo: Takeda Pharmaceuticals

Toshiro Hasegawa reported for Bloomberg News, that the Topix pharmaceutical index became the first and so far only sector to reach a new peak on August 22, following a market rout that put Japan's stock market into a bear market.

Since the start of July, drugmakers have gained 10%, leading the 33 sectors in the Topix index.

This is a significant improvement from the first half of the year when the sector ranked 18th in performance.

Pharmaceuticals are typically considered defensive stocks, meaning they are less susceptible to economic downturns. This trend is not limited to Japan; healthcare shares in the U.S. and Europe have also performed well, as investors seek safer options during uncertain times.