Nikkei logs best day in 4 months.
Nikkei bounces back from a month low on Wednesday from the news of strong U.S. retail sales, which in turn helped in easing growth of US which is world’s biggest economy – one of Japan’s top trading partner.
Pull back in the yen was welcomed by the Japanese market, with the Nikkei bouncing 1.8% after suffering the lowest trading drop in five months on Tuesday. It had further dropped to 3.1% after bad U.S.non-farm report .
It also lifted the dollar from a four-week low against the Yen, giving currency sensitive Japanese exporters like Toyota Motor Corp and Sony Corp some breathing space. The cheaper Yen actually strengthens the competitiveness of Japanese exporters abroad and their dollar earnings.
The bench mark of Japanese market has got off to a slow start this year comparing it to a rocketing 57% in 2013, majorly due to Tokyo’s massive fiscal and monetary stimulus to revive the world’s largest economy.
Topix index advanced 1.3%.
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