Japanese stocks recover after falls on Thursday
- 24 May 2013
- From the section Business
Shares in Japan have closed higher at the end of Friday trading, in a partial recovery from the global sell-off in shares seen on Thursday.
The Nikkei 225 index ended 0.89% up, after a day of volatile trading that had seen initial rises followed by a sharp fall, then a recovery.
Other Asian indexes were mixed, with some showing gains and others losses.
The Nikkei fell nearly 7.8% on Thursday in its worst one-day drop since the aftermath of the tsunami in March 2011.
There have been concerns over weak Chinese manufacturing data, as well as fears that the US may cut stimulus measures.
A brief spike in the yield on Japanese 10-year government bonds to 1%, its highest level in a year, also sparked a sell-off, as stocks fall when yields - which help predict future interest rates - rise.
Expectations of higher interest rates typically cause stock prices to drop as investors, including businesses and households, anticipate a rise in borrowing costs.
"There's a lot of volatility from Japan... which is not good for market confidence," said Stan Shamu, market strategist at IG.
Speaking before Japan's parliament, Prime Minister Shinzo Abe said that his government would "proceed with measures to secure sustainable fiscal structure, and secure market confidence".
The Nikkei is 60% higher than it was six months ago, when Mr Abe was elected and introduced a dynamic set of monetary and fiscal policies designed to bring back inflation and jolt the country out of its 20-year economic torpor.
On Friday in Europe, major markets all showed slight gains in early trading.
In the US on Thursday, the Dow Jones closed flat, with a fall of 0.08% to 15,294.50 points.