TOKYO: Tokyo stocks extended a global equities rally on Wednesday morning, with the benchmark index soaring more than five percent following a rally on Wall Street and in volatile Chinese markets.
The Nikkei-225 at Tokyo Stock Exchange skyrocketed 5.67 percent, or 988.12 points, to 18,415.20 by the lunch break, while the broader Topix index of all first-section shares jumped 4.66 percent, or 66.04 points, to 1,482.75.
The strong rally marked the Nikkei’s biggest intraday rise since a 6.5 percent jump in March 2011, days after a plunge that followed Japan’s quake-tsunami disaster.
Wednesday’s recovery also came after the Nikkei tumbled 2.43 percent Tuesday, wiping out all of its gains since the start of the year, as weak China trade data increase worries about the world’s number two economy.
Fears of a slowdown in Chinese growth have sent panic through world stock exchanges, as the country is a key driver of global expansion and a vital market.
But European shares and US stocks powered higher Tuesday, after a rally on China’s Shanghai Index and an upgrade on the reading for eurozone second-quarter economic growth.
And on Wednesady other Asian exchanges rallied again, with Hong Kong almost three percent up and Shanghai 1.67 percent higher.
“Expectations for more policy action from China and strength in the European economy saw the return of risk,” said Chihiro Ohta, general manager at SMBC Nikko Securities.
“At long last, we may be seeing a real rebound.”
Tokyo’s broad-based rise saw market heavyeight Fast Retailing, operator of the Uniqlo clothing chain, soar 7.38 percent to 48,505 yen, while Toyota jumped 4.94 percent to 7,398 yen and banking giant Mitsubishi UFJ added 4.50 percent to 761.4 yen.
