TOKYO: Japan’s Nikkei share average jumped 9% on Thursday as investors scooped up beaten-down stocks after US President Donald Trump declared an immediate 90-day tariff pause for many countries.
The Nikkei rose 9.13% to 34,609 in its biggest daily gain since August 6, the day after the index fell in its biggest single-day rout since the 1987 Black Monday crash.
The broader Topix climbed 8.09% to 2,539.4.
“Investors bought back stocks today, wishing that they had not dumped stocks in the previous session,” said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Intelligence Laboratory.
“But the rally also means that the market was too bearish about the impact of Trump’s tariffs,” Suzuki said.
In a stunning reversal, Trump said on Wednesday he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China, sending US stocks rocketing.
The Nikkei saw huge volatility this week, closing 6% higher on Tuesday after a 7.8% slump on Monday to a 1-1/2-year low. The index closed 4% lower on Wednesday. Thursday’s rally followed surges on Wall Street overnight, with the S&P 500 soaring 9.5% for its biggest daily gain since 2008.
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