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Tokyo stocks close higher after Christmas sell-off
TOKYO, Dec 26, 2018 (BSS/AFP) – Tokyo stocks closed higher on Wednesday,
rebounding from the previous day’s five-percent drop as the yen’s rise took a
breather.
The benchmark Nikkei 225 index, which on Tuesday closed at a 20-month low
on worries over the US economy, gained 0.89 percent, or 171.32 points, to
19,327.06 to log its first positive finish in six sessions.
The broader Topix index rose 1.12 percent, or 15.92 points, to 1,431.47.
Despite the recent market rout, there has been no clear sign of a
recession in the US economy, said Norio Miyagawa, senior economist at Mizuho
Securities.
“Our judgement is that the US economy remains solid at the moment” though
investors need to pay attention to the possible impact of US trade rows with
other countries on financial markets and business outlooks, he said in a
report.
“As financial markets regain their calm, we expect US stocks and the
dollar will track higher,” he said.
Share prices in Wednesday’s rebound failed to recoup all the ground lost
the previous day as investors grew cautious before Wall Street reopens after
a bruising session before Christmas.
“The future direction of Japanese stocks will depend on whether New York
will rebound or sink further,” Masayuki Kubota, chief strategist at Rakuten
Securities, told AFP.
Heavy selling hit the Tokyo market on Christmas Day following sell-offs on
Wall Street. The yen drew safe-haven buying, weighing on sentiment.
On Wednesday, the yen’s appreciation came to a lull, helping boost
exporter shares.
Toyota rose 1.10 percent to 6,146 yen and Nintendo climbed 1.24 percent to
28,115 yen.
The dollar was changing hands at 110.45 yen, up from 110.01 yen late
Tuesday but still down from the 111-yen range seen last week.
BSS/AFP/HR/1245