https://arab.news/pngp2
- Calm finally appears to be returning, says analyst
BANGKOK: Japan’s benchmark Nikkei 225 index soared more than 10 percent on Tuesday, rebounding after a rollercoaster start to the week that sent markets tumbling in Europe and on Wall Street.
European markets were mostly lower, with Germany’s DAX down 0.4 percent at 17,277.27 and the CAC 40 in Paris 0.7 percent lower, at 7,098.89.
In London, the FTSE 100 shed 0.4 percent to 7,974.44.
Those modest declines and gains in Asia suggested a respite from the turmoil of the past two trading sessions, when the Nikkei lost a combined 18.2% and other markets also swooned. US futures showed solid gains, with the contract for the S&P 500 up 0.5 percent and that for the Dow Jones Industrial Average gaining 0.3 percent.
HIGHLIGHTS
European markets were mostly lower, with Germany’s DAX down 0.4 percent at 17,277.27 and the CAC 40 in Paris 0.7 percent lower, at 7,098.89.
South Korea’s Kospi jumped 3.3 percent to 2,522.15. It had careened 8.8 percent lower on Monday.
Hong Kong’s Hang Seng index gave up early gains to close 0.3 percent lower at 16,647.34.
The Shanghai Composite index, largely bypassed by Monday’s drama, rose 0.2 percent.
Monday’s plunge reminiscent of a crash in 1987 that swept around the world pummeled Wall Street with more steep losses, as fears worsened about a slowing US economy.
The Nikkei gained nearly 11 percent early Tuesday and bounced throughout the day to close up 3,217.04 points at 34,675.46 as investors snapped up bargains after the 12.4 percent rout of the day before.
“Calm finally appears to be returning,” Bas van Geffen of Rabobank said in a report. The Nikkei’s 10 percent gain didn’t make up for Monday’s loss, he said, “but at least it takes some of the ‘panic’ out of the selling.”
The dollar rose to 144.87 yen from 144.17 yen. The yen’s rebound against the dollar after the Bank of Japan raised its main interest rate on July 31 was one factor behind the recent market swings, as investors who had borrowed in yen and invested in dollar assets like US stocks sold their holdings to cover the higher costs of those “carry trade” deals.
Elsewhere in Asia, South Korea’s Kospi jumped 3.3 percent to 2,522.15. It had careened 8.8 percent lower on Monday.
Hong Kong’s Hang Seng index gave up early gains to close 0.3 percent lower at 16,647.34. The Shanghai Composite index, largely bypassed by Monday’s drama, rose 0.2 percent to 2,867.28.
In Australia, the S&P/ASX 200 advanced 0.4 percent to 7,680.60 as the central bank kept its main interest rate unchanged. On Monday, the S&P 500 dropped 3 percent for its worst day in nearly two years. The Dow declined 2.6 percent and the Nasdaq composite slid 3.4%.