Japan Stocks Rebound Despite Nuclear Concerns

Asian financial markets rallied on Wednesday. Tokyo stocks rebounded 5.7 percent after a steep two-day sell-off after Japan’s killer earthquake and unfolding nuclear crisis.

Other Asian stock markets were also higher. However, another fire at the Fukushima Daiichi nuclear plant and fears of more radiation leaks, kept investors on edge and Tokyo stocks volatile.

[Tsuneo Watanabe, Tokyo Foundation]:
„I think this is the biggest challenge and crisis since World War II. On the other hand, this can be our chance to reunite and figure out how we live from now on.“

Asian markets also received a flip from U.S. stocks, which closed down, but off lows as a more upbeat view from the Federal Reserve helped limit Japan-related losses. The Fed stuck with its ultra-loose monetary policy but said the economy was gaining traction.

The gains in Tokyo stocks were led by short covering by hedge funds, adding that the market was still extremely volatile.

Japan’s Nikkei average surged 5.68 percent, clawing back about a third of its losses since the earthquake and tsunami hit the country on Friday, and closing above the psychologically important 9,000 point level at 9,093.72.

Nikkei futures are up 4.2 percent.

Foto: NTD