Japanese stocks jumped for a second day, heading for the biggest two-day rally since November, as a U.S. equity rebound bolstered investor appetite for risk assets.
The Topix index climbed 1.7 percent to 1,504.47 as of 9 a.m. in Tokyo, building on Wednesday’s 3.2 percent gain, as all of its 33 industry groups advanced. The Nikkei 225 Stock Average added 1.5 percent to 18,658.53. The yen weakened for a third day, trading at 120 per dollar. Shares in the U.S. staged the biggest rally since 2011, halting a six-day rout, as dovish words from the Federal Reserve helped soothe investor concern about an economic slowdown and stock-market turmoil in China.
Japanese investors will be watching Chinese equities, and continued declines in Shanghai would weigh on sentiment, Akino said. The Shanghai Composite Index fell for a fifth day Wednesday as lower interest rates failed to halt a $5 trillion rout. Futures on the FTSE China A50 Index gained 1.7 percent in most recent trading.
Concern about the outlook for the world’s second-largest economy has roiled global markets since China unexpectedly devalued its currency more than two weeks ago. The turmoil has weakened the case for raising U.S. rates in September, Fed Bank of New York President William C. Dudley said, cautioning that it’s important not to overreact to short-term developments.
Source : Bloomberg