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Nikkei snaps six-day losing streak as bargain-hunting accelerates

Published 26/08/2015, 07:29
© Reuters. Market prices are reflected in a glass window at TSE in Tokyo
JP225
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TOPX
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By Joshua Hunt

TOKYO (Reuters) - Japanese stocks rebounded on Wednesday, turning around a six-day losing streak as Chinese markets calmed and bargain hunters snapped up major stocks such as banks and big exporters.

The Nikkei share average (N225) rose 3.2 percent to 18,376.83, posting its biggest daily gain since October 31.

The benchmark index had fallen 13.6 percent, or 2,813 points, in the previous six sessions through Tuesday, threatening to wipe out its gains for the year as fears of a China-led global economic slowdown drove the selling of risk assets.

But early morning volatility gave way to steady buying as major stocks fell to attractive prices just as Chinese markets seemed to recover their nerve following Tuesday's cut in interest rates and bank reserve requirements by the People's Bank of China.

The broader Topix (TOPX) rose 3.2 percent to 1,478.97 and the JPX-Nikkei Index 400 (JPXNK400) added 3.2 percent to 13,316.89.

© Reuters. Market prices are reflected in a glass window at TSE in Tokyo

(Additional Reporting by Ayai Tomisawa; Editing by Eric Meijer)

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