Tokyo stocks staged a sharp rebound Monday, with the Nikkei index finishing up over 2 percent, as investors sought shares battered before the weekend by Britain’s vote to leave the European Union and sentiment brightened on the Japanese government’s pledge to take measures to support the economy.
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Asked about the possibility an emergency policy-setting meeting by the central bank, he said: “No comment”.
But Ishizuki also cited speculation that the Federal Reserve is now more likely to cut interest rates than raise them amid the uncertainty and sluggish economic outlook caused by Britain’s vote to leave the European Union, and if so that would fuel yen-buying. Former Prime Minister Tony Blair said that even though he could not envisage another referendum being legally called, it was not impossible for it to happen.
The Nikkei rose 2.4 per cent to 15,309.21, after diving 7.9 per cent on Friday.
The yen firmed to 99.00 yen JPY=EBS per dollar on Friday, its strongest against the dollar since November 2013 as investors flocked to the safe-haven currency in the wake of Brexit.
In the currency market, at 4:05 p.m. (0705 GMT), the United States dollar traded at JPY 102.07-102.08 against JPY 101.96-102.06 in NY and 102.01-03 in Tokyo at 5 p.m. Monday.
“Overall it’s hard for the market to rise, but construction names are seeing some action with anticipation for future stimulus”, said Nobuyuki Fujimoto, a senior market analyst at SBI Securities Co.
Japan’s Foreign Minister Fumio Kishida, for his part, said he will talk over phone with EU Foreign Policy chief.. “I think the real effects of Brexit in the long run would not be as big as people fear now”, Hamada said.
Kishida told the ambassador that the Japanese government wants the British government to carefully listen to opinions from more than 1,000 Japanese companies doing businesses in Britain.
Shares in other exporters, such as Hitachi, Panasonic and Yamaha, also dropped.
Hong Kong’s Hang Seng index was down by another 0.7% at 20,110.88, while the mainland’s benchmark Shanghai Composite traded 0.9% higher at 2,878.76.
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Australia’s ASX/200 in Sydney fell 0.7% to close at 5,103.30.
