Source: AFP
Tokyo stocks rose on Tuesday after a record sell-off the previous day fueled by worries about the US economy and a stronger yen.
The Nikkei 225 index fell 9.40 percent, or 2,957.90 points, to a high of 34,416.32 points, having roared more than 10 percent earlier in the day.
The broader Topix index rose 9.30 percent, or 207.06 points, to 2,434.21.
The Nikkei fell more than 12 percent on Monday, or 4,451.28 points — the biggest point drop in its history.
Prime Minister Fumio Kishida said on Tuesday that it was best to take the sharp swings in stride, as analysts predicted the volatility could continue for days.
“The stock market is moving again today and I think it’s important to judge this situation calmly,” Kishida said at a scheduled news conference.
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“We will continue to monitor the situation with a sense of urgency and carry out economic and fiscal management in close cooperation with the Bank of Japan,” he said.
Nomura Securities added that the market will likely remain extremely volatile this week.
“Today’s gain can be explained in one sentence: a technical recovery” after the sharp decline, the brokerage said.
Monex said it expects nervous trading to continue with a focus on currency moves.
“The market looks set to start sharply higher as it should make a natural recovery after yesterday’s plunge, while the dollar-yen moves to yen depreciation,” it said.
The yen was also volatile, trading at 144.75 against the dollar late in the morning, up from 146.28 in early trade.
On Monday, the Japanese currency had strengthened to 141.70 against the dollar, the strongest since early January.
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A stronger yen is negative for Japanese exporters, and recent rallies have been fueled by central bank policy decisions that have reversed months of trends.
The Bank of Japan last week raised interest rates for the second time in 17 years, with talk of another rate hike to follow, while the US Federal Reserve hinted at a cut as soon as September.
Among major stocks in Tokyo on Tuesday, Honda rose 16.58 percent to 1,459 yen after a report it was expected to post record quarterly profit.
Toyota rose 12.72 percent to 2,516 yen, Sony Group rose 9.08 percent to 12,310 yen and Nintendo rose 13.56 percent to 7,503 yen.
Semiconductor stocks were also sharply higher, with Tokyo Electron adding 16.75 percent to 25,750 yen and Advantest up 14.51 percent to 6,084 yen.
Source: AFP
