Tokyo Shares Recover

Tokyo stocks rallied on Thursday after three days of losses, leading a cautious recovery in Asian markets with technology firms seeing some much-needed buying.

However, while traders managed to staunch the recent sell-off across the region several issues continue to dog sentiment, the latest being the repercussions of Donald Trump’s recognition of Jerusalem as Israel’s capital.

Asian markets plunged on Wednesday led by tech firms as investors cashed out following a year-long surge in the sector, while energy firms were also hit by worries about commodities demand.

However, strong gains in big name firms including Amazon, Facebook and Google parent Alphabet provided some buying impetus for the sector in Asia.

Tencent jumped 1.7 percent and Sony rose 0.6 percent while Samsung was 0.5 percent higher, although ongoing worries about further selling kept a cap on gains. But energy firms, which also dived Wednesday, suffered again after a plunge in oil prices overnight fuelled by disappointing US stockpiles data.

On broader markets Tokyo ended the morning session 1.3 percent higher, while Hong Kong added 0.2 percent — the two benchmark indexes had plunged around two percent on Wednesday.

Sydney was up 0.6 percent and Singapore put on 0.1 percent but Shanghai shed 0.4 percent and Seoul sipped 0.3 percent.

“Asia equity investors found themselves standing in a sea of pain at yesterday’s market close and are likely breathing a sigh of relief that both EU and US equity investors appear a bit more level-headed for the time being,” said Stephen Innes, head of Asia-Pacific trading at OANDA.

Via AFP

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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