Japanese stocks jumped, with the Topix index heading for the biggest three-day gain since November, as a global equity rebound gained momentum and the yen weakened.
The Topix climbed 2.7 percent to 1,540.91 as of 9:04 a.m. in Tokyo, headed for a three-day rally of 7.6 percent. The index is still down 2 percent on the week. The Nikkei 225 Stock Average added 2.5 percent to 19,030.13. The yen traded at 120.98 per dollar after weakening 0.9 percent on Thursday. A report showed the U.S. economy grew more than previously estimated in the second quarter, boosting optimism that strength in America may counter the slowdown in China.
Data Thursday showed gross domestic product in the U.S. rose at a 3.7 percent annualized rate last quarter, exceeding all estimates in a Bloomberg survey, and up from the 2.3 percent growth rate reported last month. Bigger gains in consumer and business spending showed the U.S. expansion is getting back on track.
A 5.3 percent rally in Shanghai’s equity market on Thursday, which people familiar with the matter said was triggered when the government stepped in to shore up prices, also bolstered global shares. All of the surge came after Japanese markets closed.
Futures on the Standard & Poor’s 500 Index slipped less than 0.1 percent after the underlying measure jumped 2.4 percent on Thursday in New York.
Data Friday showed the Bank of Japan’s key inflation gauge slumped to zero for a third time this year, as tumbling energy prices counter Governor Haruhiko Kuroda’s effort to reflate the world’s third-biggest economy.
Consumer prices excluding fresh food were unchanged in July from a year earlier, the Statistic Bureau said. Economists in a Bloomberg survey had forecast a 0.2 percent drop.
Source : Bloomberg