Nikkei 225 up by 5%, bargain hunters in action

By FXStreet The Nikkei 225 jumped by 5% in the Tokyo morning session, tracking solid gains in equity markets last Friday, with Oil prices rebounding strongly by over 10% on its largest 1 day gain in over 7 years, with bank shares also improving in value substantially.

The demand environment in today’s Asian session has been amplified in Japan, as bargain hunting strategies take place to bids beleaguered companies. As a reminder, Tokyo’s Nikkei 225 index dived drastically last Friday, pushing the majority of Asian markets lower as a result.

Last week, in a report by the FT, Koji Nagai, chief executive of Nomura, said that sovereign wealth funds in the Middle East had been the main sellers of Japanese shares, in need to close positions amid the Oil rout, which forces them to adjust fiscally. Nagai said, “when they do stop selling, investors can expect a sharp rebound.”
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Source:: FX Street