Japanese stocks rebounded on Friday following a stunning 5 percent dive the day before as the yen resumed its pace of declines and after the latest U.S data eased concerns of an early end to the Federal Reserve’s bond-buying program.
The rest of Asian equities tracked the Nikkei’s gains with Australia’s benchmark index rising from a previous seven-week low and South Korea’s Kospi at a fresh one-month high.
“We’ve had the most intense run-up in Japanese markets and now we are facing volatility. When we look back in a few months’ time, it will seem like a healthy correction,” said Adrian Mowat, managing director, chief Asian and emerging market equity strategist, J.P. Morgan.
Lower-than-expected U.S. GDP figures and rising claims for unemployment benefits reassured investors that the Federal Reserve would not start tapering stimulus anytime soon.
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