Stocks in Tokyo followed U.S. equities higher, rising for the first time in four days as investors weighed a report showing Japan’s economy shrank in the fourth quarter and signs shares are oversold after posting the worst weekly slump since 2008.
The Topix index added 2 percent to 1,219.90 as of 9:01 a.m. in Tokyo after plunging 13 percent last week. The Nikkei 225 Stock Average gained 2 percent to 15,245.67 as the yen weakened against the dollar 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.
A report Monday showed Japan’s economy shrank 1.4 percent in the fourth quarter on an annualized basis, more than economists’ forecast for a 0.8 percent contraction.
The Topix’s 14-day relative strength index fell to 26.49 on Friday, below the level of 30 which some traders say indicates that shares will rise.
Source : Bloomberg