TOKYO: Tokyo stocks jumped on Tuesday, in line with gains across Asia, as investors returned to play catch-up with the previous day’s gains globally, boosted by dovish comments from Federal Reserve officials.
The benchmark Nikkei 225 index surged 2.43 percent, or 751.86 points, to 31,746.53, while the broader Topix index rose 2.12 percent, or 48.11 points, to 2,312.19.
Traders were cheered after Fed decision-makers suggested they could hold off further interest rate hikes this year owing to a spike in US Treasury yields that have tightened credit conditions.
Market players were also monitoring developments in the Middle East after Hamas launched a deadly attack on Israel at the weekend, with fears that the violence could spread to other areas of the region.
“The market remains very concerned over the potential for the war (between Hamas and Israel) to escalate into other fronts and players,” said Rodrigo Catril of National Australia Bank.
However, dovish remarks by Fed policymakers provided a catalyst to buy. Among them was bank vice chair Philip Jefferson, who said the recent spike in US Treasury yields to multi-year highs could provide the necessary restraint on credit that would be achieved by higher interest rates.
Comments
Comments are closed.