Japanese Stock Market Rebounds

The Nikkei regained 5.7 per cent Wednesday after panic selling earlier in the week decimated the index.

Following two days of massive sell-offs that many investors believe was overdone, Wednesday appears to be a day of corrective trading on stock markets all over the world. The earthquake, tsunami, and ongoing nuclear crisis that have hobbled Japan’s economy caused a huge 17 per cent loss on the country’s main stock market Monday and Tuesday, but today the Nikkei is showing signs of recovery. It’s still down 11 per cent on the year, however. The Japanese yen has actually been bolstered by predictions of a large-scale repatriation of the currency in order to help with recovery efforts.