The upscale Ginza shopping district in Tokyo, Japan, on Saturday, May 4, 2024.
Bloomberg | Bloomberg |
Japanese stocks rallied sharply on Tuesday after the Nikkei 225 and Topix fell more than 12% in the previous session. Other markets in the Asia-Pacific region also opened higher.
Japan's Nikkei225 — which posted its biggest loss since the Black Monday crash of 1987 in the previous trading session — and the broad-based Topix gained more than 10%.
The yen weakened by over 1% to trade at 145.75 against the US dollar.
The major Japanese trading houses all recorded gains of more than 8 percent, with Marubeni increasing by more than 13 percent. Softbank Group Corp rose by almost 10 percent.
South Korea's Kospi rose over 4%, while the small cap Kosdaq gained over 5.5%. The recovery came after South Korean markets were temporarily halted on Monday due to the activation of containment measures.
South Korean heavyweight Samsung Electronics rose 4.2 percent, while chipmaker SK Hynix rose 5.5 percent.
The Australian S&P/ASX 200 opened with a gain of 0.16%.
Oil prices also rose Brent crude oil rose 1.65% to close at USD 77.56 per barrel. West Texas Middle School Crude oil prices rose 1.86% and traded at $74.30.
Household spending in Japan fell more than expected in June compared to a year earlier, falling by 1.4% in real terms. Average monthly income per household rose by 3.1% in real terms from a year earlier. The sharper-than-expected decline could slow the BOJ's plans to raise interest rates.
Hong Kong Hang Seng Index Futures were at 16,781, below the HSI's last closing price of 16,698.36.
The Reserve Bank of Australia will announce its key interest rate later today. Economists expect it to remain unchanged at 4.35%.
Overnight in the USA, 30-Stock Dow and that S&P500 recorded their worst sessions since September 2022.
The Dow fell by 1,033.99 points and closed 2.6% lower, while the S&P500 slipped by 3%. The Nasdaq-Composite lost 3.43% and closed 15% below its closing high.
— CNBC's Hakyung Kim, John Melloy and Sarah Min contributed to this report.
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