[Asia Economy Reporter Jeong Hyunjin] The Tokyo Stock Exchange in Japan closed with a nearly 3% gain on the 4th, reacting to the rally in the U.S. New York Stock Exchange.
According to Bloomberg and others, the Nikkei 225 index on the Tokyo Stock Exchange closed at 26,992.21, up 2.96% from the previous trading day. The TOPIX index ended the session at 1,906.89, up 3.21%.
The U.S. New York Stock Exchange started the first trading day of this month on an upward trend due to a rebound buying following a sharp decline throughout September. The Dow Jones Industrial Average rose 2.66% to 29,490.89, the S&P 500 increased 2.59% to 3,678.43, and the Nasdaq rose 2.27% to 10,815.44.
The reason for the rebound in the New York Stock Exchange was growing expectations that the aggressive tightening stance of the U.S. Federal Reserve (Fed) would ease somewhat. The 10-year U.S. Treasury yield, which serves as a benchmark for market interest rates, plunged that day. The decline in the 10-year U.S. Treasury yield supports risk asset preference sentiment.
However, Mitsui Ikuo, a fund manager at Aizawa Securities, told Bloomberg, "It is still too early to say that the downward trend in the U.S. market has stabilized," and predicted that the Japanese stock market would also move according to global market confusion. He added that risk factors such as corporate earnings announcements and the results of the U.S. midterm elections still remain.
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