Japanese shares rebound from 2-1/2-year lows
24 May 2013
Japanese shares bounced back in volatile trading after the biggest decline since the 2011 earthquake, while stock markets elsewhere in Asia extended losses from the biggest decline in a year and a half and Australian banks saw the largest weekly drops in a year.
European stocks were up ahead of the release of German business confidence and American durable-goods data.
The yen was up as the nation's top central banker said he had done enough to spur growth. The Australian dollar weakened with the stock market while copper gained from lower currency rates.
The Stoxx Europe 600 Index was up 0.4 per cent at 8:14 a.m. in London, while Japan's Topix Index rose 0.5 per cent in volatile trade, after a 6.9 per cent drop yesterday. Standard & Poor's 500 Index futures added 0.1 per cent, while Japan's currency increased 0.2 per cent to 101.77 per dollar and the New Zealand dollar retreated 0.4 per cent.
The Australian dollar fell against all its 16 peers.
Copper increased 0.4 per cent while oil fell 0.3 per cent.
According to analysts, data today might show US durable goods orders increased, even as German business confidence bottomed out after a two-month drop. Bank of Japan governor Haruhiko Kuroda said he did not have any target for the nation's stocks or currency following the drop in shares yesterday that led to an erosion of $314 billion in market value. European Central Bank president Mario Draghi said his pledge to buy government bonds was helping to ensure that interest-rate cuts reached the parts of the euro-area economy that need them the most.
The MSCI Asia Pacific Index retreated 0.3 per cent. Australia's S&P/ASX 200 Index fell 1.6 per cent while markets in Singapore, Thailand, Malaysia and Sri Lanka remained closed today for holiday.
The Topix alternated between gains of 3.3 per cent and losses of the same amount today, with the gauge down in record volume following yesterday's spurt in government bond yields. Koruda said at a conference in Tokyo that BoJ would continue efforts to end deflation, while it was desirable the bond market developed in a stable manner.
