Nikkei rebounds as government ramps up intervention rhetoric after Brexit

domingo 26 de junio de 2016 22:29 GYT
 

* Defensive stocks rally while investors avoid exporters

* Can't tell if selling has hit bottom - trader

By Ayai Tomisawa

TOKYO, June 27 (Reuters) - Japan's Nikkei share average rebounded on Monday as government officials stepped up warnings that they may intervene in currency markets to stabilise the yen after Britain voted to leave the European Union.

The Nikkei rose 1.6 percent to 15,189.21 in midmorning trade, after diving 7.9 percent on Friday in the wake of Britain's historic decision.

Prime Minister Shinzo Abe said on Monday he has instructed Finance Minister Taro Aso to watch currency markets "ever more closely" and take steps if necessary.

Abe summoned Aso and Bank of Japan Deputy Governor Hiroshi Nakaso to discuss how to deal with the market turbulence caused by Brexit.

Traders said that investors remained cautious as they try to assess the impact of the Brexit on Japan's economy in the long term, and expect the government to take necessary measures to contain any fallout. The yen rose to a more than two-and-a-half- year high of 99.11 yen to the dollar on Friday.

"Although it's rebounding today, we can't tell if selling has hit the bottom yet," said Kenji Yoshikawa, head of equity business division at Mizuho Securities. "We still don't know if or when measures will come out, and we can't price that in yet."   Continuación...