Japan Stocks Jump in Record Daily Gain After Slump, Posting Historic Rebound

alkhabrfdakika
6 Aug, 2024

Stock markets across Asia have made gains after plunging on Monday
Japanese stocks rebounded on Tuesday after Monday's sharp sell-off that shocked global financial markets.  

The Nikkei 225 stock index rose 10.23 percent, or 3,217 points, its biggest one-day gain after a more than 12 percent drop the previous day. 

Tokyo's sell-off on Monday came after the Bank of Japan's first interest rate hike in 17 years strengthened the yen against the dollar, making Japanese stocks and Japanese exports look more expensive to foreign investors and buyers. U.S., British and European stocks also fell on Monday on concerns the U.S. 

economy is heading for a slowdown. Jesper Coll, managing director at Monex Group Japan, said he remains confident in Japanese stocks despite Monday's sell-off. "Japan's fundamentals are strong, there is zero risk of a recession and business leaders are working to improve returns on capital," he told the alkhabrfdakika.  

South Korean stocks also managed to gain some ground again on Tuesday. The Kospi stock index rose 3.5 percent after falling 8.8 percent on Tuesday, its worst trading day since the 2008 global financial crisis. Taiwan's main stock index rose nearly 3.4 percent after posting a record drop of 8.4 percent on Monday. 

The news came after a sharp drop in global stock prices on Monday.

  • In New York, the tech-heavy Nasdaq index opened down 6.3% but pared losses during the day to finish down 3.4%. 
  • By Monday's close, the S&P 500 was down 3% and the Dow Jones Industrial Average was down 2.6%. 
  • In Europe, Paris' CAC-40 erased earlier losses to close down 1.4%, while Frankfurt's DAX and Britain's FTSE 100 were down about 2% each.
Concerns about the growth of the world's largest economy have risen following weak U.S. jobs data on Friday.
These have also fueled speculation about when and how much the Federal Reserve will cut interest rates. "Markets are very volatile right now and will likely remain so until the Fed's decision in September," said Stefan Anrick, senior economist at Moody's Analytics. 
"So we can't rule out rapid swings in either direction." There are also concerns that shares of big technology companies, especially those that have invested heavily in artificial intelligence (AI), are overvalued and are now struggling.
 Last week, chipmaker Intel announced major job cuts and disappointing financial results, and there's speculation that rival Nvidia, which has been a big beneficiary of the boom in demand for AI technology, may delay the launch of its latest products.


alkhabrfdakika

alkhabrfdakika

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