Tokyo (AFP) – Tokyo stocks bounced back in early trade Tuesday following a historic selloff on worries over the US economy and a stronger yen. The benchmark Nikkei 225 index jumped 8.41 percent, or 2,646.36 points, to 34,104.78, while the Topix added 8.75 percent, or 194.84 points, to 2,421.99. On Monday, the Nikkei had closed down 12.40 percent, or 4,451.28 points — the largest points drop in its history.
“The market is seen starting sharply higher, as it should perform a natural rebound after yesterday’s plunge while dollar-yen moves towards the yen’s depreciation,” Monex said. The brokerage said it expected nervous trade to continue with a focus on forex movements. The yen weakened sharply to 146.01 against the dollar, having surged on Monday to 141.70, a level not seen since early January. A stronger yen is a negative factor for Japanese exporters, and the recent rally has been fuelled by central bank policy decisions that have reversed the trends of recent years.
The Bank of Japan last week raised interest rates for the second time in 17 years, with talk of another rate hike to come, while the US Federal Reserve has hinted at a cut as soon as September. Among major shares in Tokyo on Tuesday, Honda roared 14.90 percent to 1,438 yen following a report that it was expected to announce a record quarterly profit. Toyota jumped 10.51 percent to 2,466.5 yen. Sony Group advanced 7.44 percent to 12,125 yen. Nintendo added 9.87 percent to 7,259 yen.
Semiconductor shares also rose. Tokyo Electron added 12.26 percent to 24,760 yen. Advantest rose 9.11 percent to 5,797 yen.
© 2024 AFP
