Published: Thu, February 08, 2018
Finance | By Gustavo Carr

Nikkei rises as Wall St rebounds after bruising sell-off; Toyota jumps

Nikkei rises as Wall St rebounds after bruising sell-off; Toyota jumps

The 225-issue Nikkei Stock Average ended up 35.13 points, or 0.16 percent, from Tuesday at 21,645.37.

The Dow posted a 2.3 percent increase, its biggest daily percentage gain since January 29, 2016, while the S&P 500 rose 1.7 percent, its biggest one-day gain since November 7, 2016, the day before the election of Donald Trump as president.

The market turmoil began early last week but has now intensified.

Chris Beauchamp, chief market analyst at IG, said it's the "speed of the correction, not its size", that has proven the "real shock, particularly to a market inured to low volatility".

"We need to keep an eye on the opening in NY later today", Yamamoto said.

In the currency market, the us dollar is trading in the mid 109 yen-range on Wednesday.

The steep drops Friday and Monday wiped out the gains the Dow and S&P 500 made since the beginning of the year, but both remain higher over the past 12 months.

Monday's drop was bad, but there were worse days during the financial crisis, including a 777-point plunge in the Dow in September 2008 that was equivalent to seven per cent, far bigger than Monday's decline.

Gold advanced 0.3 percent to $1,327.76 an ounce.

After big moves higher and lower, US stocks are mixed Tuesday afternoon following a global sell-off.

The Nasdaq composite fell 3.8 per cent to 6,967.53, while the Russell 2000 index of smaller-company stocks sank 3.6 per cent to 1,491.09.

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Tokyo stocks ended slightly higher Wednesday after giving up most of their early hefty gains following an overnight recovery in US shares, as caution about shares' recent deep losses has not entirely dissipated.

The broader Standard & Poor's 500 index was down 5 points, or 0.2 percent, at 2,643.

On the flip side, Japan Tobacco is losing more than 3 percent, Mitsui Engineering & Shipbuilding is lower by more than 2 percent and Marubeni down more than 1 percent. They last stood down 1.1 per cent.

Copper lost 1.30 percent to $7,075.85 a tonne.

European shares also tumbled, with Germany's Dax hitting a 4-month low.

The yield on 10-year Treasuries declined four basis points to 2.77 percent.

The trigger for the sell-off was a sharp rise in U.S. bond yields following Friday's data that showed United States wages increasing at the fastest pace since 2009, raising the alarm about higher inflation and with it potentially higher interest rates.

US stocks swooned Friday and Monday as investors anxious that accelerating inflation and higher interest rates could derail the market's record-setting rally.

"Once rates started moving, that kind of exposed some of these levered short VIX sales".

Against the yen, which is often used as a safe-haven currency because of Japan's solid current account surplus, the dollar slipped 0.2 per cent to 108.86 yen, after having lost one per cent on Monday.

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