On Tuesday, the Nikkei jumped more than 1 per cent in early exchanges, paring some of Monday’s almost 5 per cent decline
Tokyo stocks rose Tuesday, recovering some of the losses suffered in the previous day’s retreat, as the yen softened against the dollar, while most other Asian markets started the day on a positive note following another record on Wall Street.
With Hong Kong and mainland Chinese bourses closed for a holiday after surging over the past week on a slew of economic stimulus out of Beijing, focus was on Japan following the wipeout led by a strong yen.
The currency surged after Japan’s Shigeru Ishiba – who has backed the central bank’s interest rate hikes – won a vote Friday to lead the country’s ruling party.
On Tuesday, the Nikkei jumped more than 1 per cent in early exchanges, paring some of Monday’s almost 5 per cent decline, as the yen retreated against the dollar and gave beaten-down exporters some much needed relief.
Data showing Japanese business confidence remained positive in the third quarter also provided a little support.
The yen slid to 144 per dollar at one time, having stayed below 142 Monday.
Traders are keeping an eye on Tokyo with Ishiba due to be sworn in as prime minister later in the day. They will be awaiting details on his plans to boost the economy, with investors concerned that he could unveil corporate tax hikes.
The yen’s weakness came after Fed chair Jerome Powell indicated the bank would keep reducing interest rates but the pace would take time.
Wellington, Taipei, Manila, Jakarta and Singapore all gained but Sydney slipped.
Shanghai, Hong Kong and Seoul were closed for holidays.
