Red Star Capital Bureau reported on August 6 that after experiencing "Black Monday", Japanese stocks rebounded strongly on Tuesday.
In early trading today, Nikkei 225 futures hit a circuit breaker on the upside. After the Japanese stock market opened, the Nikkei 225 index continued to expand its gains to 11%, rising more than 3,200 points, the largest increase in history; Topix futures also triggered a circuit breaker to the upside. As of press time, the Nikkei 225 index rose to 9.12%, among which well-known companies such as ORIX, Tokyo Electron, and Honda Motor rose first; The Topix index rose 9.31%.
In terms of the Japanese yen, USD/JPY extended its intraday gains to 1.5% at 146.34. As of press time, the gain narrowed to 0.68% at 145.15.
Korea stocks also stopped falling and rebounded, with the Korea Composite Index rising more than 5% intraday, and Korea ChiNext Index (KOSDAQ) futures soaring, triggering the "SIDECAR" suspension mechanism and the suspension of programmatic trading buy orders for 5 minutes. As of press time, the Korea Kospi index rose back to 3.07%, and the Korea KOSDAQ index rose 4.83%.
Previously, the Bank of Japan's strong interest rate hike, investors' concerns about the fundamentals of the United States economy, and the increase in the market's sensitivity to price corrections due to the large gains accumulated in the early stage of Japanese stocks triggered a pullback in Japanese stocks. On August 5, Japanese stocks experienced a "darkest moment", with the Nikkei 225 Index closing down 4,451.28 points at 31,458.42 points, the largest single-day decline in history, and panic also spread to many major Asia-Pacific markets such as South Korea, Australia, and New Zealand.
After yesterday's collapse in Asia-Pacific stock markets, many countries responded urgently. According to public reports, Japan's finance minister, Shunichi Suzuki, said that he showed strong concern about the decline in the stock market, and that stock prices are determined by the market, and it is important for the government to make decisions calmly. He added that the government is working with the Bank of Japan (BOJ) and will continue to closely monitor the market and continue to monitor the movements of the foreign exchange market.
Korea regulators have made a number of comments to reassure investor sentiment, and the Korea Ministry of Finance said it would respond to heightened market volatility in accordance with contingency plans. Korea regulators also said Monday's stock market decline was "excessive" and that foreign exchange and stock markets would be closely monitored and market stabilization measures would be taken quickly if necessary.
Galaxy Securities Research Report pointed out that at present, Japanese stocks are still facing a certain pullback pressure in the short term, and it is difficult to return to the high level of 42,000 points. In the medium to long term, the trend of Japanese stocks is more dependent on changes in fundamentals, and the promotion of Japan's corporate governance improvement will support its long-term investment value to a certain extent. We should be wary of the following risks: first, volatility in overseas markets, such as further correction in technology stocks and volatility triggered by geopolitical factors; The second is that the pace of Japan's economic recovery may be slow, and the structural problems restricting Japan's economy will continue to exist, and Japanese stocks will also be under pressure; Third, if the Bank of Japan is more hawkish in timing or pace than the market expects, the earnings of export-oriented companies under exchange rate pressure will be affected, the interest burden of Japan companies will also increase, and Japanese stocks will also fluctuate.
Red Star News reporter Jiang Ziwen
Edited by Deng Lingyao
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