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Wednesday, March 16, 2011

Tokyo Shares Rebound, Closing Up More Than 5% - 16th Mar 2011

Tokyo shares have rebounded sharply, closing up 5.7% thanks to "bargain hunters".

The Nikkei rallied after two days of sell-offs which saw the index shed more than 16% following the massive earthquake and tsunami.

Among the day's major gainers were Japan's big exporters Toyota Motor Corp, which rose 8.7%, and Sony Corp, which shot up more than 10%.

However, there are fears that the unfolding nuclear disaster could once again shake confidence in the markets.

Shares in TEPCO, the operator of the stricken Fukushima nuclear power plant, have already fallen more than 24%.

The Bank of Japan has made another injection, of 3.5 trillion yen (£27bn) into the money markets.

The bank had already pumped in 23 trillion yen (£176bn) to encourage banks to continue lending and to aid in the reconstruction process.

The action came after the Tokyo Stock Exchange was forced to call for calm after the plunge at the beginning of the week. Source