Tokyo stocks staged a sharp rebound Monday, with the Nikkei index finishing up over 2 percent, as investors sought shares battered before the weekend by Britain’s vote to leave the European Union and sentiment brightened on the Japanese government’s pledge to take measures to support the economy.
The 225-issue Nikkei Stock Average ended up 357.19 points, or 2.39 percent, from Friday at 15,309.21. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 21.28 points, or 1.77 percent, higher at 1,225.76.
Gainers were led by pulp and paper, land transportation and pharmaceutical issues.
Investors snapped up shares from the outset after the Nikkei index suffered its sharpest fall in more than 16 years the previous session, as Britain’s decision to leave the 28-nation bloc stunned markets, brokers said.
Kazuhiro Takahashi, senior strategist at Daiwa Securities Co., said that fears fueled by the “Brexit” vote somewhat receded after the Japanese government and the Bank of Japan held a meeting Monday morning to discuss the economic impact of the uncertainty over global growth.
Prime Minister Shinzo Abe said the government “must take all possible measures to prevent any negative impact on Japan’s real economy, particularly small and medium-sized businesses.” Abe also ordered the BOJ to ensure liquidity to support the financial system.
via Mainichi
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Alfonso Esparza