Nikkei jumps over 3 pct on oil price bounce, stimulus hopes
By Joshua Hunt
TOKYO Jan 22 (Reuters) - Japanese stocks rebounded on Friday as crude oil prices bounced and comments by European Central Bank President Mario Draghi stoked hopes of more stimulus for Europe.
The Nikkei share average jumped 3.4 percent to 16,552.63 points by midmorning, more than recouping its losses from the previous day.
But the benchmark index remained on track to shed more than 3 percent for the week.
"We're seeing a really nice bounce today as lots of people close their short positions but that doesn't necessarily mean we've seen the bottom," said Nicholas Smith, a strategist at CLSA.
"It's tough to know when a panic is going to subside but it does look like we're starting to get there."
Growth in Japanese manufacturing activity slowed slightly in January from December but remained solid as new export orders accelerated, a survey showed on Friday.
U.S. crude oil prices remained stable in early trading on Friday after bouncing away from 12-year lows the previous day.
"The market is reacting positively to the American Petroleum Institute figures reporting a 4 million barrel addition and not the 4.6 million barrel we'd expected," said Martin King, co-managing director at Tyton Capital Advisors. Continuación...