The Japanese stock market significantly recovered on Tuesday following a historic plunge, with other Asia-Pacific markets also showing signs of improvement.
What Happened: The Nikkei 225 and the broad-based Topix in Japan experienced a gain of nearly 10%. This recovery comes after the previous session, which saw the largest loss since the 1987 Black Monday crash.
At the time of writing, the Nikkei was up 8.74%, trading at 34,206.99, while the broader Topix rose 8.81%, reaching 2,423.29.
Japan’s service-sector activity rebounded in July due to strong domestic demand, as revealed by a survey on Monday. The final au Jibun Bank Service Purchasing Managers’ Index (PMI) increased to 53.7 last month, up from 49.4 in June, which marked the first contraction in 21 months. Japan’s jobless rate decreased to 2.5% in June from the previous month.
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Additionally, real wages grew by 1.1% in June, marking the first increase in 27 months following a revised 1.3% decline in May, according to data from the labor ministry released on Tuesday, Reuters reported.
The yen also weakened by over 1% against the U.S. dollar. This rebound was seen across various sectors, with Japan’s heavyweight trading houses witnessing a rise of over 8%. Marubeni MARUY saw a surge of over 14%, while SoftBank Group SFTBF SFTBY jumped over 11%.
Oil prices also saw an uptick, with Brent crude rising by 1.65% to $77.56 per barrel and U.S. West Texas Intermediate crude increasing by 1.86% to $74.30.
S&P 500 Futures climbed 1.40% to 5,288.50 points, while Nasdaq 100 Futures advanced 1.88% to 18,351.50 points. Meanwhile, Dow Jones Futures increased 0.87% to 39,187 points on Monday, according to data from Benzinga Pro.
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Image Via Midjourney
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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