Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Japan shares rebound from 6-mth lows as stimulus hopes buoy markets

Published 02/03/2020, 04:56
Updated 02/03/2020, 05:00
© Reuters.  Japan shares rebound from 6-mth lows as stimulus hopes buoy markets
JP225
-
JNIV
-
TOPX
-
6506
-
8035
-
6758
-
6857
-
IFISH.T
-
IRLTY.T
-
ISVCS.T
-
MTHR
-

TOKYO, March 2 (Reuters) - Japanese shares staged a mild

rebound in choppy trading on Monday as investors pinned their

hopes on a coordinated monetary policy response from major

central banks to offset the hit to the global economy from a

fast-spreading coronavirus.

The benchmark Nikkei average .N225 slid as much as 1.5% to

20,834.29, its lowest since Sept. 5, but reversed course to gain

1.1% by the midday break after the Bank of Japan Governor

Haruhiko Kuroda pledged to take steps to stabilise markets.

The central bank will monitor the developments carefully and

offer sufficient liquidity via market operations and asset

purchases, Kuroda said in an emergency statement. On Friday, Federal Reserve Chairman Jerome Powell issued a

statement and said that the U.S. central bank was ready to

support the economy. The Nikkei's volatility index .JNIV , a measure of

investors' volatility expectations based on option pricing, rose

to a four-year high of 47.96, before dropping sharply to 36.

The broader Topix .TOPX also ended the morning session

1.1% higher at 1,527.61, showing a solid rebound following

Kuroda's statement.

All but three of the 33 sector sub-indexes on the Tokyo

Stock Exchange were trading higher, with fish and forestry

.IFISH.T , services .ISVCS.T and real estate .IRLTY.T the

top three performers.

The index of Mothers startup shares .MTHR rebounded 6.1%,

after plunging 6.3% to hit a fresh 4-year trough on Friday.

Cyclical stocks that suffered sharp falls on Friday

outperformed the overall markets, with semiconductor-related

Tokyo Electron Ltd 8035.T and Advantest Corp 6857.T climbing

4.4% and 5.2%, respectively, while Sony Corp 6758.T gained

3.8%.

Bucking the trend, Yaskawa Electric Corp 6506.T slipped

0.6% after surprisingly weak Chinese data pointed to slower

growth in the world's second-largest economy, a big market for

the Japanese company.

The Caixin/Markit Manufacturing Purchasing Managers' Index

(PMI) tumbled to 40.3 in February, the lowest level since the

survey began in 2004, while China's official Purchasing

Managers' Index (PMI) fell to a record low of 35.7 last month.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.