Asia stocks bounce back as Cyprus fears ease; Nikkei ends up 2%
investing.com -- Mar 19
Asian stock markets bounced back from the previous day's sell-off on Tuesday, with shares in Japan outperforming the region as the yen weakened on the back of receding concerns a controversial bailout deal for Cyprus could destabilize financial markets.
During late Asian trade, Hong Kong's Hang Seng Index rose 0.2%, Australia's ASX/200 Index ended 0.5% lower, while Japan's Nikkei 225 Index closed up 2% after plunging 2.7% on Monday.
Market sentiment stabilized following reports that the government in Cyprus was preparing a new deposit tax proposal to lessen the impact on smaller depositors.
The parliament in Cyprus was to vote on whether to approve the tax proposal later in the day.
Asian markets ended with heavy losses on Monday as appetite for riskier assets weakened broadly following news that a one-time tax was to be imposed on bank deposit holders as part of a EUR10 billion bailout deal for Cyprus.
In Tokyo, the Nikkei rebounded from its biggest one-day loss since May as the yen weakened against the U.S. dollar, boosting exporters.
A weaker yen increases the value of overseas income at Japanese companies when repatriated, boosting the outlook for export earnings.
Automakers Mazda and Honda jumped 5.6% and 2.5% respectively, while Sony and Canon rallied 6.8% and 3.1%.
Japanese megabanks were also higher, with stocks of the nation's largest lender Mitsubishi UFJ Financial Group rising 1.8%, while Sumitomo Mitsui Financial Group and Mizuho Financial Group added 1.7% and 1.5% respectively.
Weather officials say the average density of carbon dioxide in Japan is rising above the international standard at all 3 observation points in the country.
Carbon dioxide is one of the greenhouse gases associated with global warming. (NHK )
The Diet passed a bill Friday to set up a system that will assign an identification number to every citizen to improve government management of income, social security and tax information despite public concerns about the potential for data abuse. (Japan Times )
Keeping the meltdown-stricken Fukushima nuclear plant in northeastern Japan in stable condition requires a cast of thousands. Increasingly the plant's operator is struggling to find enough workers, a trend that many expect to worsen and hamper progress in the decades-long effort to safely decommission it. (AP )
The government of Japan has bestowed one of that nation's highest honors on a Japanese-American, a former U.S. Soldier and World War II veteran, for his work furthering relationships between the Japanese and Americans. (army.mil )
This Monday, members of the seminal metal band X Japan were in Odaiba rubbing shoulders with the likes of Brad Pitt, Lady Gaga and AKB48′s Yuko Oshima. The catch? They were all made out of wax. (Japan Times )