Japan Shares Jumped as Investors Ignored The GDP Data

Japanese stocks jumped today, as investors ignored data that showed that the economy was back in contraction, and they turned to stocks whose valuations were damaged in recent waves of selling.

The Nikkei rose 2.09% to close at 28,406.84 points, recovering from its lowest level in four months, which it hit last week, while the broader Topix index increased 1.54% to 1,907.74 points.

The Japanese economy contracted more than expected in Q1 of the year, as slowed vaccine rollouts and new COVID-19 cases affected spending in sectors such as dining out and clothing.

Mitsubishi UFJ Financial Group rose 2.35 after the country’s largest banking group reported an increase in dividends and a stronger earnings outlook for this year than previously expected.

Tokyo Electron Chip Equipment, which lost 6.29% this month despite its strong business results, gained 1.3%.