TOKYO: Japan’s Nikkei share average rose for a second straight day on Monday, buoyed by a rally in shares of domestic drugmakers and chip-related companies, and a strong end to the week for Wall Street on Friday.

The Nikkei finished the day up 0.52% to 32,434.00, after sharply paring gains at the start of the afternoon session only to make up most of that ground in a grind higher into the close.

That left it about 275 points back from last Wednesday’s 33-year peak of 32,708.53. The broader Topix rose 0.65% to 2,238.77, nudging towards its 33-year top from Wednesday’s 2,250.20.

Looming policy decisions from the US Federal Reserve on Wednesday and Bank of Japan on Friday prevented traders from chasing shares higher.

Investors are also still trying to gauge if the Nikkei’s rally has gotten too hot following a near-23% surge since mid-March to last week’s high.

“We expect the Nikkei to rise in line with the 25-day moving average this week, but while releasing some of its heat”, eventually targeting 32,944, said Kazuo Kamitani, a strategist at Nomura Securities.

Healthcare was the best-performing Nikkei sector on Monday, rising 1.59% after Eisai’s Alzheimer’s drug Leqembi got the unanimous backing of a panel of US Food and Drug Administration (FDA) experts.

Eisai gained 1.94%, while peers Daiichi Sankyo and Chugai Pharmaceutical rose 4.11% and 2.12%, respectively.

Semiconductor-related shares also boosted the index, with chip-testing equipment maker Advantest climbing 2.89% and chip manufacturer Renesas Electronics up 1.85%.

Chip-making machinery giant Tokyo Electron rose 0.24%.

Startup investor SoftBank Group, which has a particular focus on AI, gained 1.59%. The yen’s decline towards 140 per dollar supported exporters, with Toyota Motor rising 0.85% and Honda adding 1.13%.

At the other end, shippers tumbled, with Kawasaki Kisen Kaisha falling 4.01%, making it the Nikkei’s worst performer.

Nippon Yusen dropped 2.37% and Mitsui O.S.K. Lines was down 2.01%.