Nikkei up in afternoon trade after massive losses

Japan's key stock index rebounded in afternoon trade Tuesday with sentiment turning positive on sharp gains in Hong Kong, helping the battered market recover from a 26-year low.
The benchmark Nikkei 225 index was up 280.83 points, or nearly 4 percent, to 7,443.73 in late afternoon trading. Earlier, it had slipped below the 7,000-level before buyers stepped in to buy exporters like Toyota and Sony.
"Sentiment turned positive in the afternoon session thanks to sharp gains in the Hong Kong stock market," said Shinko Securities Co. Ltd. senior strategist Yutaka Miura.
Investors also bought export-linked shares on the yen's retreat from a 13-year high against the dollar. Shares of exporters such as Toyota Motor Corp. and Sony Corp. have been under heavy pressure as a strong yen cuts the value of their overseas earnings when converted back to yen.
The dollar rose to 93.91 to the dollar in afternoon Tokyo trade compared with 93.01 in New York late Monday. The Japanese currency fell to as low as 90.89 yen Friday last week, the lowest since August 1995.
The modest rebound in the Japanese market follows the Nikkei's plunge Monday to a 26-year-low as jittery investors dumped shares on pessimism over Japanese corporate earnings and fears over a global recession.

Updated : 2021-01-28 18:08 GMT+08:00