Japan’s Topix Soars Toward Biggest Gain Since 2008
- Economic contraction report boosts speculation of BOJ stimulus
- Topix Relative Strength Index signals selloff went too far
Tokyo Stock Exchange.
Photographer: Andy Rain/BloombergThis article is for subscribers only.
Stocks soared in Tokyo, with the Topix posting its biggest gain in more than seven years, as investors judged shares had been oversold and a report showing Japan’s economy shrank more than expected last quarter boosted the outlook for central bank stimulus.
The Topix surged 8 percent to 1,292.23 at the close in Tokyo, its best gain since October 2008, after plunging 13 percent last week. The Nikkei 225 Stock Average jumped 7.2 percent to 16,022.58 as the yen weakened for a second day. U.S. markets rebounded on Friday to halt the longest losing streak since September. Chinese mainland markets reopen Monday after a week long holiday during which global stocks fell into a bear market.