Breaking News

Japan's Nikkei soars seven percent on stimulus hopes, short covering

News Date: 15/2/2016 01:34:17
Japanese shares surged at the start of the week following a spate of dismal economic data, which nonetheless raised hopes for more stimulus measures from the Bank of Japan and the government. Aiding the stocks further, short traders closed off their selling positions to take profits after an 11-percent slump last week for the Nikkei, the worst since 2008.

Japan's GDP contracted 1.4% on an annual basis in the last quarter of 2015, worse than expectations of a 1.2% contraction, while matching another drop in the second quarter of last year. Revised Industrial Production on the other hand fell 1.7% m/m in December, missing forecasts of a 1.3% fall.

Bank of Japan has surprised investors in its last meeting by cutting interest rates into negative territory for the first time in Japan's history, setting them at -0.1%. Nonetheless, investors still hope for more cuts, or/and an expansion of the assets purchase program the bank has been deploying for a long time now.

Japan's Nikkei index jumped 7.16% to trade at 16,022, climbing above the level of 16,000 again. Other Asian markets were buoyed as well, with Australian shares driving up 1.64%, while Korea's KOSPI added 1.47%. China's shares on the hand lost nearly one percent, after trading was closed for the whole of last week for the lunar new year holiday.

Oil prices recorded small losses on profit-taking, after jumping 12% on Friday on new reports of a possible production cut from OPEC. Brent crude futures slipped seven cents, or 0.21% to $33.30 a barrel, while U.S. crude futures gave up 13 cents, or 0.42% to trade at $29.31 a barrel.  

Precious metals lost their appeal as safe havens as stocks recovered sharply, with gold futures falling 20 dollars, or 1.60% to $1,219 an ounce, while silver futures tumbled 37 cents, or 2.34% to trade at $15.42 an ounce. Copper on the other hand jumped 2.27% to $2.080 a pound.

Investors wait for a stream of data today, with the Eurozone's trade balance for December expected to show a surplus of 22.4 billion euros, slightly lower than November's 22.7B, but still at a largely healthy pace.

From New Zealand, retail sales for the fourth quarter of last year are expected to have grown 1.4% q/q, added to third quarter's 1.6% growth, which is positive for the Kiwi's next trading.

Latest news

The number of global Coronavirus infections is increasing at an unexpected speed, and German Chancellor Angela Merkel said yesterday that the pace of new infections is advancing day after day, and at
11-2020 17 08:37:57

Japanese stock indices closed lower today, due to undermining investor sentiment for fear of a rise in Corona cases, and the Nikkei index fell by 0.53% to 25385.87 points, and over the course of a we
11-2020 13 05:10:43

The US dollar manage this morning, to achieve progress during the trading session, as the « safe currency » rose by 0.04% to indicate 93.073, and the dollar fell against the Japanese yen
11-2020 12 08:11:42

Trump is still trying to raise the curtain on the corruption – as he claims – which was defined by the polling process in the last major US election that was sorted by Democrat Joe Biden,
11-2020 11 08:58:20

Most of the global markets rebounded on Monday, right after the opening of the weekly trading session, after Democrat Joe Biden won the US presidential elections, and both stocks and commodities rebo
11-2020 10 09:23:45

More News