TOKYO: Tokyo’s benchmark index has rocketed 7.71 per cent, leading an Asian equities rally in its biggest one-day jump since late 2008 during the global financial crisis when markets were hit by wild volatility.
The Nikkei-225 at the Tokyo Stock Exchange soared 1,343.43 points on Wednesday to 18,770.51 by the close, while the broader Topix index of all first-section shares jumped 6.40 per cent, or 90.66 points, to 1,507.37.
The strong rally came after the Nikkei tumbled 2.43 per cent on Tuesday, wiping out all of its gains since the start of the year, as weak China trade data fuelled fears about the world’s No.2 economy.
Chinese figures showed imports and exports sank in August, adding to concerns about the economic giant.
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 later in the day, after a rally on China’s volatile Shanghai Index and an upgrade on the reading for eurozone second-quarter economic growth to 0.4 per cent from 0.3 per cent.
The Dow Jones Industrial Average gained 2.42 per cent, the broad-based S&P 500 jumped 2.51 per cent, while the Nasdaq Composite Index rose 2.73 per cent.
And on Wednesday morning, Hong Kong and Shanghai stocks climbed for a second successive day in early trade.
“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.”
