Japan Stocks Bounce Back From Heavy Losses

MarketWatch Pulse

Japanese stocks snapped back to life Tuesday morning, making solid gains as buyers stepped in to pick up deals after a sharp selloff the day before. The Nikkei Stock Average traded 1.7% higher after a 3% dive on Monday in reaction to data showing an unexpected economic contraction in the July-Septmeber quarter. The Topix was also up 1.7%, having lost 2.5% in the previous session. A rebound in the dollar's rate against the yen offered some support, with the greenback bouncing back to �116.74, up from �116.12 at the previous Tokyo stock close. Also helping sentiment were growing expectations that Prime Minister Shinzo Abe would announce a delay to plans to hike the nationwide consumption tax, and instead call snap elections for next month. Among the blue-chip outperformers were Toshiba Corp. (up 2.6%), Mitsubishi Electric Corp. (up 2.2%), Toyota Motor Corp. (up 2%) and Kirin Holdings Co. (up 2.3%). Sony Corp. rallied 4.5%, with the conglomerate expected to hold a briefing on its entertainment business later in the day.

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