Tokyo stocks rebound with record single-day gains

Tokyo stocks saw sharp rebounds on Tuesday, with the benchmark Nikkei stock index closing with its largest single-day rise in history, after a record drop of 4,451 points the previous day.

The 225-issue Nikkei Stock Average gained 3,217.04 points, or 10.23 percent, to close the day at 34,675.46, the largest closing increase surpassing the previous record of 2,676.55 points set on Oct. 2, 1990.

On Monday, the index plunged to its lowest level this year with a drop of 4,451.28 points or 12.4 percent from Friday, refreshing its record intraday drop previously seen in the "Black Monday" crash in 1987.

Meanwhile, the broader TOPIX index also saw a record point gain on Tuesday by finishing 207.06 points, or 9.30 percent, higher at 2,434.21.

Futures trading for both benchmark indices were suspended at one point over circuit breakers triggered by the sharp rebounds.

Market watchers here noted that better-than-expected U.S. service sector data for July eased concerns about a recession and helped lift U.S. Treasury yields.

Due to buy-the-dip moves over Monday's meltdown and encouraging data in Japan, market sentiment improved, according to analysts.

Japan's average monthly wages in inflation-adjusted terms, a barometer of consumer purchasing power, saw its first gain in 27 months by rising 1.1 percent on year in June, official data showed on Tuesday.

On the top-tier Prime Market, most stocks rose, with marine transportation, rubber products and consumer credit shares leading the gains.

Advancing issues outnumbered declining ones by 1,575 to 64, with seven issues remaining unchanged.

(Source: Xinhua)