Nikkei drops to 2-week low as Takeda drags down pharma sector

Nikkei drops to 2-week low as Takeda drags down pharma sector

TOKYO - Japanese shares fell 1.4 per cent to a two-week low on Tuesday as Takeda Pharmaceutical Co tumbled after a US jury ordered it to pay US$6 billion (S$7.6 billion) over claims it concealed risks associated with its Actos diabetes drug.

Gains in the yen also hurt sentiment, while tech stocks extended declines into a second day.

During the session, the Bank of Japan stood pat on policy as expected after a two-day policy meeting.

The Nikkei share average lost 201.97 points to end at 14,606.88, its weakest close since March 26.

Takeda tumbled 5.2 per cent to 4,572 yen (S$55.87), its weakest close in two months, and was the second most-traded stock after a US jury ordered it pay $6 billion in damages over claims concealed cancer risks associated with its Actos drug.

It fell as much as 8.8 per cent to its weakest since August 2013 during trade, and its losses weighed on other drugmakers.

The broader Topix index dropped 1.9 per cent to 1,174.56. The new JPX-Nikkei Index 400 fell 1.7 per cent to 10,679.63.

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