Japanese stocks bounce back

Source: Dukascopy
© Dukascopy
"This is a short-covering rally, as and it was not led by any buying on fundamental hopes that stocks will rise"
- Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management Co.

Japanese stocks climbed for the first time in five days in anticipation for the European policy to take serious action on the spreading so-vereign debt.

The Nikkei 225 (NKY) Stock Average rose 1.7% to 8,522.02 breaking a four-day losing streak on Thursday after French and Belgian officials announced the advancement in indebted Dexia SA split up. The broader Topix index added to gains 1.5% to 736.86.

Garry Evans, HSBC's head of global equity strategy, wrote in a report that Japan’s long-term outlook is not stimulating, although it has gained from the recent surge in risk aversion.

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