Japanese stocks surge record 14.15pc

October 14, 2008

, TOKYO, October 14 – Japan\’s Nikkei stock index posted its biggest ever gain Tuesday, skyrocketing more than 14 percent as investors cheered international efforts to aid banks crippled by the credit crunch.

The benchmark soared 1,171.14 points, or 14.15 percent, to end at 9,447.57, rebounding after its largest loss in two decades on Friday.

"The markets had been saying it was necessary to inject public funds into troubled financial institutions, and countries have moved to do that," said Kazuhiro Takahashi, equity chief at Daiwa Securities SMBC.

It was a spectacular turnaround for the Nikkei, which plunged 9.62 percent on Friday, the biggest loss in two decades, capping its worst week ever. Japanese markets were closed on Monday.

"In the short-term, it seems to have hit a bottom," Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Securities, told Dow Jones Newswires.

Masanaga Kono, strategist at Societe Generale Asset management, said the Nikkei may soon pass the psychologically important 10,000-point level.

The index is still down 38 percent in 2008, however, battered by worries about a global financial crisis and a worldwide economic slowdown.

Shares rose across the board, with the Topix index of all first-section shares surging 115.44 points, or 13.73 percent, to 956.30.

Toyota Motor leapt 16 percent to 3,720 yen. Sony jumped 17 percent to 2,785 yen.

The rally came after Wall Street\’s Dow Jones index surged 936.42 points or 11.08 percent to 9,387.61 on Monday — its biggest points gain on record and the sharpest percentage rise since 1933 during the Great Depression.

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