Asia shares mixed in modest rebound from Tuesday's sell-off
Feb 11 2018 by Cristina Jennings
Shares are tumbling in Asia after a wild day for USA markets that resulted in the biggest drop in the Dow Jones industrial average in six and a half years.
The index of 30 big-name US companies ended up at 24,912.
The Nikkei has been one of Asia's strongest performing indexes lately, but its plunge this week has now erased all of its gains for the year so far.
The broader Topix index gained 0.37 percent or 6.50 points to reach 1,749.91.
On Tuesday, the yield on the 10-year Treasury slipped to 2.73 percent from 2.84 percent. Gold was down nearly 2% from Tuesday's highs before bouncing slightly to sit 1% lower.
USA 10-year yields nudged lower to 2.76 per cent, after going as high as 2.80 per cent earlier in the day. But in an example of the bumpy ride Wall Street is on Tuesday, the index quickly gave up some gains was up 341 points at 24,687. The Nasdaq composite was up 115 at 7,083.
Steep declines on Friday and Monday wiped out the gains the Dow and S&P 500 had made since the beginning of the year.
Among the market's best performers, SumcoCorp.is gaining more than 11 percent, Yokogawa Electric is rising more than 9 percent and Furukawa Electric is higher by more than 7 percent. By late morning it was down 5.2 percent at 21,511.04. "Consumer spending is also recovering and so the Japanese economy is stable", said Toshimitsu Motegi, the economy minister.
He did keep an eye on the market's performance during his congressional testimony Tuesday morning. "It is now up 187 points so we are back up today".
Analysts said Tuesday that there was little to indicate panic in European markets.
"It's a risk that I strongly believe is under-appreciated and underpriced in markets at the moment".
The dollar held gains made late in NY against the yen, while the euro and pound began making inroads against the greenback.
Asian shares and US stock futures sank on Tuesday, after Wall Street suffered its biggest decline since 2011 as investors' faith in factors underpinning a bull run in markets began to crumble.
Tokyo stocks attracted hefty buybacks from the outset of Wednesday's trading, pushing up the Nikkei average by more than 740 points by midmorning. Tech firms were among the big winners, with AAC Technologies up 1.8 percent in Hong Kong, adding to Tuesday's 7.5 percent jump, while Tencent rose 1.1 percent.
The declines for the Dow and the benchmark S&P 500 index were the biggest single-day percentage drops since August 2011.
The blue-chip Dow Jones Industrial Average closed up 2.3% at 24,912.77.
However, sentiment was such that a third straight day of declines for the pound failed to prop up share values - with sterling standing at $1.3960 on Tuesday evening as the United States currency built some strength.
Markets are also on edge over USA lawmakers' wrangling to extend the so-called debt ceiling - funding for the US government runs out on February 8 unless a stopgap bill manages to pass the Senate later on Wednesday.
The Nikkei's losses on Tuesday extended the index's more than 1.5 percent declines in the Monday session, but few blamed domestic factors. "The only thing that is really different is that bond yields got up to 2.8 percent".
The Dow Jones industrial average fell 159 points, or 0.6 percent, to 25,364.
Economists say investors are nervous about inflation and possible interest rate hikes, but the drop shouldn't be cause for alarm. Dow Minis were down 0.9 per cent.