The Nikkei stock exchange showed signs of recovery after hurt by the US subprime mortgage. It rose 458.80 points, or 3%, to 15,732.48, which is the biggest one-day percentage gain in 13 months.
Market responded well as dollar got strength and traded near ¥114.70 a dollar, notably it fell to year low ¥111.60 on the last closing.
The TOPIX was up 2.92%, or 43.18 points, at 1,523.57. Due to the subprime fiasco, it was down by some 9.4% last week, which was its biggest one-week fall since September 1990. However, with the rejuvenation, market is ready to bounce back and the TOPIX is ready to break above 1,600, but the index may feel stagnation after achieving 16k, due to low growth in the major sectors.
The biggest contributors are Canon Inc, which soar 7.6% to ¥5,810 ($50.81), but on Friday it had lost 8.6%, Toyota Motor Corp’s stakes surged 4.2% to ¥6,450 ($56.43) it also lost 7.2% earlier, while Daikin Industries’ shares increase by 8.9% to ¥4,770 ($41.73).
Financial stocks also did good business as Mizuho Financial Group Inc. gained 5.1% to ¥664,000 (5,809.38) and Mitsubishi UFJ Financial Group added another 2.8% to ¥1.09 (0.01) million.
Apart from the financial and technology sector, Energy stocks also surge as Nippon Oil Corp traded at ¥885 ($7.74), which is 6.9% better to the previous trading.
Moreover, steel sector boosts from the market improvement and Nippon Steel Corp. jumped by 4.3% to ¥745 (6.52), whereas JFE Holdings Inc. improved by 4% to ¥7,060 (61.77).
On the first working day of the week, Japanese stock exchange successfully rebounded from a plunge, after the Federal Reserve’s move to cut its discount rate, which eased fears about credit crunch and successfully encourage buyers to buy across the board. In the market, trade was at normal levels with 2.2 billion shares, compared with a daily average volume of 2.1 billion shares in July, which kindle the hope of end of subprime generated apprehension.
Via: Reuters
