Nikkei Rises From 8-month Low

Japan’s Nikkei index jumped Monday, August 23, after falling to an eight-month low in the previous session, as auto stocks rebounded from losses after Toyota Motor announced a 40% cut in global production next month.

Nikkei climbed 1.78% to 27,494.24 thanks to bargain hunting, after hitting its lowest level since December on Friday.

The broader TOPIX index gained 1.83% to 1915.14 points, led by a 3.1% rise in the transportation equipment index.

The sub-index fell more than 10% last week, in one of the biggest drops since early 2020, after Toyota’s announcement.

Toyota stock rose 3.4%, Denso jumped 6.6%, and Nissan Motor increased 3.4%, as investors believe that the selling was exaggerated last week and that the impact of Toyota’s production cut will be short-lived.

All 33 subsector indices on the Tokyo Stock Exchange rose, while volatile shipping companies gained 5%, and electrical machinery shares gained 2.7%.