Japanese stocks rose as stability in the yen eased investor nerves, while signs that politicians may soon provide more fiscal support boosted sentiment ahead of the Group of 20 meeting on Friday.
The Topix jumped 1.8 percent to 1,307.54 at the close in Tokyo, erasing losses from the previous two days. The Nikkei 225 Stock Average added 1.4 percent to 16,140.34. The yen trading at 112.16 per dollar, pulling back from Wednesday’s intraday highs. Investors cheered signs that Japan may increase an extra budget, while China’s vice finance minister said fiscal stimulus should be deployed to boost global growth.
Asian stocks gained, easing a selloff in global equities that brought the regional benchmark index to a three-year low, as crude oil rebounded after plunging below $ 27 a barrel.
The MSCI Asia Pacific Index climbed 0.3 percent to 116.93 as of 9:13 a.m. in Tokyo. The gauge tumbled 12 percent this month through Wednesday, heading for its worst month since the depths of the global financial crisis in 2008. Global equities have fallen more than 19 percent from a record high reached in May, with Japanese shares plunging into a bear market as tumbling oil prices fed concerns over the global economic outlook.
E-mini futures on the Standard & Poor’s 500 Index climbed 0.6 percent on Thursday. The U.S. equity benchmark index closed 1.2 percent lower at a 21-month low on Wednesday. A late-day rally paced by health-care and small-cap shares helped trim declines of as much as 3.7 percent.
West Texas Intermediate crude climbed 8.6 percent, after sinking the most in more than four months on Wednesday as energy producers turned gloomier on the prospect of a recovery this year. Energy shares had the biggest gains among industry groups in the MSCI Asia Pacific gauge on Thursday.