- Nikkei is catching up after a stock market crash
On the Tokyo Stock Exchange, the Nikkei Index for 225 leading stocks is recovering after the significant loss at the start of the week. The market gauge surged by 2957.90 points or 9.4 percent to a midday (local time) interim level of 34416.32 points.
On Monday, the index plunged by more than 12 percent, leading to dramatic losses on stock exchanges in other countries. The recent sharp rise in the Japanese currency, the yen, had put significant pressure on the share prices of Japanese export-oriented companies. However, traders now report an improvement in sentiment following a subsequent weakening of the yen.
The Japanese companies heavily dependent on exports seen a relief with the reported improvement in sentiment, leading to a weakening of the yen. The strong recovery of the Nikkei Index on the Tokyo Stock Exchange is also attributed to the Japanese, as their significant losses earlier in the week are now being offset.
