After a day of 12.4 percent drop, the steepest since 1987, the Nikkei 225 index, made up of the 225 largest companies on the Tokyo stock exchange, rebounded sharply in the first minutes of trading on Tuesday in Asia.
Japan’s main stock index opened with a gain of 10.52 percent on Tuesday, at 34,353 points. If the rebound continues, the Nikkei 225 will end three consecutive sessions with a negative trend.
The gains in Asian trading followed sharp losses on Wall Street, but not on the same scale as Monday’s meltdown in Japan.
The Nikkei is now close to the level it was at a year ago. The largest percentage gain in history for the Nikkei was 14.2 percent in October 2008.
The Bank of Japan (BoJ), which raised interest rates to their highest level since 2008 on July 30, sent the yen strengthening to a seven-month high, pressuring stocks.
Global markets were also spooked by fears of a US recession, fuelled by a weaker-than-expected jobs report.
The yen weakened more than 0.20 percent to trade at 144.56 yen against the dollar. Meanwhile, the Mexican peso appreciated to around 19.2976 units per dollar in international trading.
South Korea’s Kospi jumped over 3 percent, while the small-cap Kosdaq rose more than 4.5 percent. South Korean markets were temporarily halted on Monday after they fell 8 percent. Mainland China’s CSI 300 opened flat, while Hong Kong’s Hang Seng Index rose 1.03 percent. Australia’s S&P/ASX 200 opened 0.27 percent higher.
Oil prices also rose, with Brent crude up 1.30 percent to $77.28 a barrel. West Texas Intermediate crude rose 1.63 percent to trade at $74.11.
What happens in the Asian session will be decisive in determining the mood with which the markets in the United States and Mexico will start on Tuesday. However, uncertainties and unanswered questions have not left the world financial markets. Hence, volatility has intensified.
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– 2024-08-08 02:05:05
