- CNTV English - CCTV News

Homepage > News > Biz >

Nikkei rebounds 0.95 pct on eased eurozone fears

09-14-2011 08:14 BJT

Nikkei stock index rising 0.95 percent Tuesday.
TOKYO, Sept. 13 (Xinhua) -- Tokyo stocks bounced back Tuesday, with the benchmark Nikkei stock index rising 0.95 percent on eased fears about the debt crisis in the eurozone following European Central Bank (ECB) President Jean-Claude Trichet's latest remarks, and news that China may help bailout debt-ridden Italy.

The majority of the Tokyo Stock Exchange's (TSE) 33 sectors posted gains, following the pounding Tokyo shares took Monday, which sent the Nikkei plummeting to a two-and-a-half year closing low on fears Greece will default on its debt and banks in the single currency eurozone may receive credit downgrades due to the amount of Greek assets they hold.

But stocks gained from the off, with Japan's key export sector making up lost ground as the yen backed off from the euro and chip and financials found favor on renewed optimism about the situation in Europe, market players here said.

The upbeat mood on Tuesday was sparked by ECB President Jean- Claude Trichet saying Monday that the central bank in Europe stands ready to provide unlimited amounts of liquidity to banks also helped ease concerns over the European sovereign debt problem, they said.

"We stand ready to provide liquidity to banks as required, it is again a sentiment that we all expressed," Trichet said in a meeting with fellow central bankers in Basel, Switzerland.

"In the case of the euro area, we have the capacity as a central bank to provide liquidity on an unlimited basis and at a fixed rate," Trichet said.

The ECB chief also instructed debt-riddled Greece to implement the reforms as per Athens' promise and to reduce its public debt to avoid potential defaults and to cap the recent spate of eurozone-triggered, global equity routs.

"Trichet said the right thing. Still, even if his comments helped to prevent contagion, Europe has a debt problem, beginning with Greece, that can't be solved until the economy heals," said Kiyoshi Ishigane, a senior strategist in Tokyo at Mitsubishi UFJ Asset Management Co.

The 225-issue Nikkei Stock Average added 80.88 points from Monday to come off Monday's two and a half year closing low to finish at 8,616.55, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange gained 8.56 points, or 1.15 percent, to close at 749.82.

Reports that Italy's Finance Ministry has held talks with China's sovereign-wealth fund and other Chinese monetary authorities, regarding the possibility of Beijing buying Italian bonds to help Rome escape its debt predicament, also helped lift the market mood Tuesday, brokers here also said.

"China's bond-buying news gave confidence to market investors that the world's second largest economy is not going to let the eurozone economy deteriorate," said Fumiyuki Nakanishi, general manager at SMBC Friend Securities Co.

Based on the latest talks and monetary maneuvers the yen depreciated to 105.64 against the euro Tuesday from 104.35 at the close of trading Monday and Japan's exporters were granted some much-needed relief as a weaker yen helps boost overseas competitiveness and profits.

Suzuki Motor climbed 3.6 percent to 1,538 yen, following the Japanese automaker announcing Monday it plans to part ways with German partner Volkswagen AG and Toyota Motor, the world's largest automaker, gained 1.0 percent to 2,649 yen on reports the firm will construct a new factory in Indonesia.

High-tech issues also found traction, with industrial robotics maker Fanuc rising 2.3 percent to 10,610 yen and electronic component maker Kyocera Corp. climbing 3.4 percent to 6,740 yen.

Japanese chip-related issues were also among Tuesday's notable gainers, following the Philadelphia Semiconductor Index leaping 3.0 percent on Monday to book its highest closing level since Aug. 15.

Subsequently, chip-making equipment producer Dainippon Screen Manufacturing Co. jumped 4.8 percent to 462 yen, while chip-tester maker Advantest Corp. shot up 4.8 percent to 896 yen. Elpida, meanwhile, soared 13 percent to finish at 557 yen.

Trading volume on Tuesday dropped to 1.68 billion shares on the Tokyo Exchange's First Section, marginally down from Monday's volume of 1.69 billion shares, with advancing issues beating declining ones by 1,225 to 333.


Editor:Zhang Rui |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program