Japan’s benchmark Nikkei 225 index soared more than 10% 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% at 17,277.27 and the CAC 40 in Paris 0.7% lower, at 7,098.89. In London, the FTSE 100 shed 0.4% 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. U.S. futures showed solid gains, with the contract for the S&P 500 up 0.5% and that for the Dow Jones Industrial Average gaining 0.3%.
Quick Read
- Japan’s Nikkei 225 index surged over 10% on Tuesday, rebounding after a volatile start to the week that saw significant declines in European and U.S. markets.
- European markets were mostly lower, with Germany’s DAX down 0.4%, Paris’ CAC 40 down 0.7%, and London’s FTSE 100 down 0.4%.
- Despite these modest declines, gains in Asian markets indicated some relief from the recent market turmoil.
- U.S. futures showed positive movement, with the S&P 500 contract up 0.5% and the Dow Jones contract up 0.3%.
- The Nikkei’s 10% gain on Tuesday followed an 18.2% drop over the previous two trading sessions, closing up 3,217.04 points at 34,675.46.
- The dollar strengthened to 144.87 yen from 144.17 yen, contributing to market volatility due to the higher costs of carry trade deals.
- Other Asian markets also saw gains, with South Korea’s Kospi up 3.3%, Hong Kong’s Hang Seng down 0.3%, and China’s Shanghai Composite up 0.2%.
- Australia’s S&P/ASX 200 advanced 0.4%, Taiwan’s Taiex rose 1.2%, and Bangkok’s SET index gained 0.3%.
- On Monday, U.S. markets experienced significant losses, with the S&P 500 down 3%, the Dow down 2.6%, and the Nasdaq down 3.4%.
- The global sell-off was triggered by weaker-than-expected U.S. hiring data, raising concerns about the Federal Reserve’s high interest rates.
- However, a report showing growth in U.S. services sectors helped stabilize sentiment.
- U.S. benchmark crude oil prices rose slightly, with crude at $73.06 per barrel and Brent crude at $76.33 per barrel.
- The euro fell to $1.0910 from $1.0954.
The Associated Press has the story:
Japan’s Nikkei 225 soars 10%, other world markets are mixed after Mon. rollercoaster start
Newslooks- BANGKOK (AP) —
Japan’s benchmark Nikkei 225 index soared more than 10% 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% at 17,277.27 and the CAC 40 in Paris 0.7% lower, at 7,098.89. In London, the FTSE 100 shed 0.4% 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. U.S. futures showed solid gains, with the contract for the S&P 500 up 0.5% and that for the Dow Jones Industrial Average gaining 0.3%.
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 U.S. economy. The Nikkei gained nearly 11% 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% rout of the day before. “Calm finally appears to be returning,” Bas van Geffen of Rabobank said in a report. The Nikkei’s 10% 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 U.S. stocks sold their holdings to cover the higher costs of those “carry trade” deals. Elsewhere in Asia, South Korea’s Kospi jumped 3.3% to 2,522.15. It had careened 8.8% lower on Monday. Hong Kong’s Hang Seng index gave up early gains to close 0.3% lower at 16,647.34. The Shanghai Composite index, largely bypassed by Monday’s drama, rose 0.2% to 2,867.28.
In Australia, the S&P/ASX 200 advanced 0.4% to 7,680.60 as the central bank kept its main interest rate unchanged. Taiwan’s Taiex was up 1.2% after plunging 8.4% the day before and the SET index in Bangkok gained 0.3%. On Monday, the S&P 500 dropped 3% for its worst day in nearly two years. The Dow declined 2.6% and the Nasdaq composite slid 3.4%. The global sell-off that began last week and gained momentum after a report Friday showed that American slowed their hiring in July by much more than economists expected. That and other weaker than expected data added to concern the Federal Reserve has pressed the brakes on the U.S. economy by too much for too long through high interest rates in hopes of stifling inflation.
But sentiment was helped by a report Monday by the Institute for Supply Management said growth for U.S. services businesses was a touch stronger than expected, led by the arts, entertainment and recreation sectors, along with accommodations and food services. The U.S. economy is still growing, so a recession is far from certain. The U.S. stock market is still up a healthy amount for the year, with double-digit percentage gains for the S&P 500, the Dow and the Nasdaq. Markets have romped to dozens of all-time highs this year, in part due to a frenzy around artificial-intelligence technology and critics have been saying prices looked too expensive.
Other worries also are weighing on the market. The Israel-Hamas war and other global hotspots could cause sharp swings for the price of oil. Early Tuesday, U.S. benchmark crude oil was up 12 cents at $73.06 per barrel. Brent crude, the international standard, picked up 3 cents to $76.33 per barrel. The euro fell to $1.0910 from $1.0954.
