TOKYO: Tokyo shares have closed 3.2 per cent higher, rebounding sharply from six days of losses after China cut interest rates in a bid to shore up confidence in the world’s number two economy.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange jumped 570.13 points to 18,376.83.
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The Topix index of all first section shares rose 3.23 per cent, or 46.32 points, to 1,478.97.
China’s central bank reduced interest rates and slashed the amount of money banks need to hold in reserve on Tuesday – its second such double move in two months – in a bid to bolster its economy.
“The Chinese central bank has belatedly made a move,” Hiroichi Nishi, a manager at SMBC Nikko Securities, told Bloomberg News.
“One of the reasons behind the steep falls so far was the fact that the Chinese authorities hadn’t done anything. The fact that they have now shows that they’re determined not to let the economy worsen.”
Tokyo’s benchmark index dived nearly 4.0 per cent to close at a fresh six-month low on Tuesday.
