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.