Asian stocks fluctuated following the biggest rally in Japanese stocks in seven years.
The MSCI Asia Pacific Index rose 0.1 percent to 117.63 as of 9:30 a.m. in Tokyo, after falling as much as 0.6 percent earlier. The regional gauge soared 4.1 percent Monday, the biggest advance since September. Japan’s Topix erased an early loss as SoftBank Group Corp. surged 15 percent after announcing a buyback plan.
Japanese shares rallied Monday by the most since October 2008 as investors speculated a global selloff had gone too far and optimism increased that the Bank of Japan will increase stimulus. European Central Bank President Mario Draghi reiterated on Monday his willingness to act should financial turmoil threaten price stability.
Source : Bloomberg
Asian stocks headed for the biggest advance in almost seven years as Japanese shares rallied the most since the financial crisis amid increasing speculation that equities were oversold. Chinese shares fell as markets reopened after the New Year’s holiday.
The MSCI Asia Pacific Index gained 4.4 percent to 117.94 as of 4:08 p.m. in Hong Kong, following a 6.2 percent slide last week. Japan’s Topix index soared 8 percent, the most since 2008, after the biggest weekly loss since the financial crisis pushed a gauge of volatility to the highest level in five years.
The Topix rose for the first time in four days, and the Nikkei 225 Stock Average jumped 7.2 percent after a report showing the Japanese economy shrank more than expected last quarter boosted the outlook for central bank stimulus. The nation’s gross domestic product fell 1.4 percent in the fourth quarter on an annualized basis, more than economists’ forecast for a 0.8 percent contraction. Traders also pointed to signs that shares are oversold after posting the worst weekly slump since 2008.