Tokyo Stocks Rebound on Monday After Government’s Pledge

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

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza