Nikkei-225 Posts Big 3.76% Gain, but Retreats 0.7%
Japan’s Nikkei-225 stock average posted its biggest gain in 21 months in late trading Monday. It rose 504.53 points, or 3.76%, to close at 13,931.61.
The advance was led by Sony Corp. and other exporters hoping that a possible cut in U.S. interest rates as early as next month will spur demand for Japanese goods in the world’s largest economy.
Japanese investors also were pleased with a Telecommunications Ministry announcement Sunday that it plans to spend more funds from the postal savings system to buy stocks starting in April. News of a holiday rally Friday on U.S. markets, which represent the world’s largest economy, provided an additional lift.
In early trading Tuesday, however, the average retreated 93.61, or 0.7%, to 13,838.
Most other major stock markets around the world were closed for Christmas.
The broader Tokyo Stock Price Index gained 36.93 points, or 2.93%, to close Monday at 1,297.81.
The Stock Exchange of Thailand index slipped 0.57 point, or 0.2%, to 266.52.
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