Tuesday, 07 July 2015 10:51
TOKYO: Tokyo stocks climbed 1.36 percent Tuesday morning, clawing back some of the previous day’s losses fuelled by Greece’s austerity vote, which analysts said was overdone.
The Nikkei 225 index at the Tokyo Stock Exchange rose 272.67 points to 20,384.79 by the break, while the broader Topix index of all first-section shares climbed 1.29 percent, or 20.90 points, to 1,641.26.
The market tumbled 2.08 percent Monday in a global equities sell-off after Greeks voted “no” in a referendum on more austerity in exchange for crucial bailout cash — raising fears it will tumble out of the eurozone.
“Yesterday’s Tokyo reaction to Greece went too far,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
“The European and US market reaction at the start of the week wasn’t as negative as expected.”
On Wall Street the Dow eased 0.26 percent, the S&P 500 shed 0.39 percent and the Nasdaq dropped 0.34 percent.
Investors are keeping watch on Brussels, where Greece’s Prime Minister Alexis Tsipras will unveil new proposals Tuesday at a hastily arranged emergency eurozone summit.
With the country’s economy on the brink, the Greek government has extended an eight-day bank closure until Thursday on fears cash machines will run dry.
The ECB, which has been keeping lenders afloat, announced it would maintain a key financial lifeline to them, but turned the screw by raising the bar for them to access the emergency funds.
In Tokyo share trading, Toyota rose 0.58 percent to 8,114 yen, mobile carrier SoftBank added 1.06 percent to 7,136 yen and Uniqlo clothing chain operator Fast Retailing gained 1.90 percent to 55,850 yen.
On forex markets, the dollar ticked up to 122.69 yen against 122.55 yen.
