Markets

Tokyo stocks stage rebound, close up 2.01pc

TOKYO: Tokyo stocks rebounded Wednesday to close 2.01 percent higher on bargain buying of exporters after the yen weak

Published September 7, 2011 Updated September 7, 2011 06:58am

2 min

By Shoaib Ur Rehman

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The Nikkei 225 index at the Tokyo Stock Exchange gained 172.84 points to 8,763.41 after closing Tuesday at its lowest level since April 2009.

The broader Topix index of all first-section issues added 1.68 percent or 12.43 points to 753.63.

Speculation that Japanese authorities may follow the Swiss National Bank with their own moves to tackle a strong yen was dampened after the Bank of Japan refrained from additional easing measures after a two-day meeting ended Wednesday.

Following the BoJ announcement, the yen strengthened to 77.30 against the dollar in Tokyo afternoon trade from 77.43 earlier, although still weaker than Tuesday.

But Takuya Yamada, senior portfolio manager at ITC Investment Partners, warned: "This yen-induced buy-back won't last, as the bigger issue surrounding the European debt crisis looms in the background."

Switzerland's central bank said after the Tokyo market closed Tuesday that it would fight to keep the Swiss franc from rising past 1.20 francs against the euro, sending safe-haven flows surging to the dollar.

On Wall Street, the Dow Jones Industrial Average closed down 0.90 percent, or 100.96 points, at 11,139.30, its third straight trading day with triple-digit losses due to eurozone debt woes and worries over a possible US slowdown.

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