TOKYO: Japanese stocks swung between gains and losses amid elevated volumes as investors hunted for bargains after the biggest selloff in more than two years. Airlines led gains, while shippers fell.
Japan Airlines Co. surged 3.8 percent, reversing a loss of 1.8 percent. Banks rebounded, with Mitsubishi UFJ Financial Group Inc. jumping 3.6 percent after yesterday’s 8.3 percent plunge. Commodity-related shares fell after the Bloomberg Commodity Index of 22 raw materials closed at the lowest level since 1999. Shipper Nippon Yusen KK headed for a 12 percent three-day drop.
The Topix index slid 0.1 percent to 1,479.02 as of 2:02 p.m. in Tokyo, fluctuating between gains of as much as 1.9 percent and losses of as much as 4.7 percent. The gauge plunged 5.9 percent on Monday, the steepest drop since May 2013, pushing the Japanese market into a correction. The Nikkei 225 Stock Average dropped 0.4 percent Tuesday to 18,471.98. The yen weakened 0.9 percent to 119.50 per dollar after strengthening to as much as 116.18 overnight in New York.
“Valuations have gotten quite cheap and technically speaking we’ve seen a very significant selloff,” said Toshihiko Matsuno, chief strategist at SMBC Friend Securities Co. in Tokyo. “We should see a rebound at some point soon.”
Volume on the Topix was 124 percent above the 30-day intraday average and on the Nikkei 225 was 139 percent higher. Volatility rose for a sixth day, with the Nikkei Stock Average Volatility Index jumping 11 percent after yesterday rising to the highest since July 2013.
Investors turned their eyes to China, which triggered the current global equity rout on Aug. 11 by devaluing its currency. The Shanghai Composite Index slid 4.3 percent Tuesday after a 8.5 percent drop on Monday, the most since 2007.
