Early on Friday, the Nikkei share average in Japan rose as concerns about a recession were allayed by an unexpected decline in U.S. jobless claims and some relief from the strong yen. The most recent jobless data revealed that the gradual softening of the labor market may have persisted and concerns that the U.S. economy may be headed for a hard landing were exaggerated.
As of 00:29 GMT, the Nikkei was up 1.7% at 35,412.07, while the Topix as a whole gained 1.4%. The recovery occurred soon after U.S. markets had a spike overnight, with the Nasdaq and S&P 500 closing Thursday more than 2% higher each.
Fluctuations in Japan’s stock Market
According to a report written by Kyle Rodda, senior financial market analyst at Capital.com, “the prospect of better-than-feared U.S. growth and a weaker yen constrain the fundamental and technical risks that inspired the extreme volatility experienced at the start of the week.”
The exchange rate between the yen and the dollar was 147.275. Following large double-digit fluctuations that shook Japan’s stock markets earlier this week, trade has been bumpy in recent days.
Global market tension was fueled by concerns about the US recession and the unwinding of investments made possible by a weaker yen. A cautious stance taken by the Bank of Japan last week sparked concerns about the speed at which the institution would tighten monetary policy, leading its deputy governor to take some remedial action on Wednesday.
