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Japanese stocks regain ground following global sell off


Japanese stocks ended Friday’s session ahead, regaining some ground after the sell-off that was seen in the previous day.

The Nikkei 225 closed 0.9 per cent higher at 14,612.45 points, while Topix index was up 0.5 per cent to 1,194.08. Both indices slid by about 7 per cent yesterday after global stockmarkets were spooked by speculation that the Federal Reserve could slow its bond-buying programme.

The Topix rose 3.3 per cent in early trades and then slid by the same amount following the claim by Bank of Japan governor Haruhiko Kuroda that enough stimulus had been announced, before regaining ground by the end of the session.

Resona Bank chief fund manager Koji Toda told Bloomberg: “The market is going up and down like a roller coaster.

“The fundamentals haven’t changed, but more and more investors are trading on momentum. Things will probably calm down in a week.”

Yesterday saw equity markets around the world lost ground after Fed chairman Ben Bernanke said the US central bank may start to ease the pace of its $85bn-a-month bond-buying scheme “in the next few meetings” if the country’s labour market continues to strengthen.

Investor sentiment was also hampered by a purchasing managers’ index showing Chinese manufacturing activity went through a surprise contraction in April, adding to concern that the world’s second largest economy is heading towards a so-called hard landing.

The FTSE 100 also rose in early trading today, with the blue-chip index gaining 3.21 points by 0809 GMT to hit 6,700.


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