Japan Nikkei rebounds after Tuesday's sharp plunge

Headline indices of the Japan share market rebounded on Wednesday, 26 December 2018, as investors chased for bottom fishing after previous day's 5 per cent drop as the yen's rise took a breather. Total 26 issues out of 33 issues of the Topix index inclined, with shares in Precision Instruments Air Transportation, Textiles & Apparels, Glass & Ceramics Products, Construction, and Warehousing & Harbor Transportation Services issues being notable gainers. In late afternoon trade, the 225-issue Nikkei index, which on Tuesday closed at a 20-month low on worries over the US economy, rose 45.80 points, or 0.24%, at 19,201.50. The broader Topix index of all First Section issues on the Tokyo Stock Exchange added 10.63 points, or 0.75%, to 1,426.18.

Japan's Nikkei slumped to a 20-month low on Tuesday after a slide on Wall Street deepened with a series of U.S. political developments causing concerns for financial markets. Markets have been roiled by concerns about a slowing global economy, the U.S.-Chinese tariff battle and another interest rate increase by the Fed. Risk aversion also grappled with the U.S. federal government shutdown and reports that President Donald Trump privately discussed the possibility of firing the Federal Reserve chairman, Jerome Powell. Last week, the central bank hiked rates, infuriating Trump who has ignored the traditional respect for the Fed's independence, calling it 'crazy', 'out of control' and a greater economic threat than China.

CURRENCY NEWS: The Japanese yen, which can be a haven during market uncertainty, appreciated in the lower 110 yen zone against dollar on Wednesday. The dollar traded at 110.56 yen after retreating to a four-month low of 110.00 yen overnight, as a perceived safe-haven during times of market volatility and economic stress.

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