Japanese stocks bounced back today (November 18th) from yesterday's losses as investors await Prime Minister Shinzo Abe's decision on wether to call a snap election and implement stimulus measures.
New data published yesterday showed Japan's economy unexpectedly entered recession, shrinking 0.4 per cent quarter-on-quarter between July and September this year, while analysts bet on a 0.5 per cent growth. It followed a revised 1.9 per cent contraction in the second quarter of 2014.
Prime Minister Shinzo Abe is now widely expected to delay a sales tax rise due next October and announce snap elections.
The Nikkei Average rebounded 2.2 per cent to 17,344.06, recovering some ground after a three per cent decline in the previous session.. The broader Topix index bounced back 2.1 per cent.
"The Japanese market had risen sharply so yesterday's shock caused volatility. The market's focus now is whether Abe can continue to draw support from voters, and what kind of measures he will announce," Isao Kubo, equity strategist at Nissay Asset Management, told Reuters.
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