Tokyo Stocks Soar to Record 1-Day Gain; Nikkei Up 13.24%

A government support package helped propel Tokyo stocks to their biggest one-day jump in history today but left uncertain prospects for an extended rebound from the worst market decline in more than 30 years.

The closely watched Nikkei Stock Average of 225 selected issues leaped 2,676.55 points, or 13.24%, to 22,898.41 after the Ministry of Finance announced emergency measures to shore up the ailing market.

As the largest single-day gain ever, it eclipsed the 9.29% rebound posted a day after the stock market crashed three years ago, when the Nikkei rose 2,037.32 points to 23,947.40.

The unprecedented jump came after a nine-month meltdown that had erased nearly half the market’s value--the equivalent of $2.1 trillion--since the end of last year. The protracted slide was the worst since the early 1950s during the Korean War, market observers said.

The rise was accelerated by “panic buying,” according to Amy Yip, manager of equity sales at Baring Securities Ltd.

“Customers were worried about missing the boat,” she said. “They’re afraid the market’s going to pull back tomorrow. . . . They’re moving entirely differently from logic.”

“Talk about herd mentality. . . . This market has gone completely and utterly bananas,” said Paul Muller of Schroder Securities.

The Foreign Ministry’s measures themselves were minor adjustments but, because they sent a message of support to the markets, their psychological impact was considerable, analysts said.