Nikkei 225 Index Ends Session up 5 Percent
- Updated: June 10, 2013
The Nikkei 225 Index ended Monday’s trading session up nearly 5 percent after strong data proved that Prime Minister Shinzo Abe’s stimulus measures are working.
After China shocked the world with worse than expected data showing that it had grown much less analysts expected, investors thought that Monday could be another day of economic bloodshed for Japan. That ended up not being the case after Japan released revised first quarter GDP data that showed the country grew 1 percent from the previous quarter.
This surprised markets and was good for a 4.94 percent move to the upside that propelled the index out of bear market territory. The Nikkei 225 Index closed at 13,514.20–up 4.94 percent.
The yen had an outsized move to the downside as well. Currency traders measure gains and losses in terms of fractions of a percent making today’s move just as big as the Nikkei’s. The yen currently sits at 98.83 against the dollar–a 1.33 percent move to the downside.
Other Asian markets were up on the day. The Hang Seng index was up 0.18 percent after somehow shrugging off the weak Chinese data. The South Korean KOSPI was up 0.46 percent as investors watch for news out of high level meetings taking place between North and South Korean officials.
Investors will also watch as the Bank of Japan holds meetings that started today. World markets want to see the bank take steps to stabilize the Nikkei that has seen violent moves in both directions of late.
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