Japanese stocks have gone on a huge tear

Sapporo, Japan. Photo: Adam Pretty/Getty Images

The Japanese market soared today.

At the close, the Nikkei 225 was at 16,022.58, up 1069.97 points or 7.16%.

The surge made up some of the 13% loss of last week when Japan was caught up in a global rout.

The latest rally was helped by an almost 2% rise in the S&P 500 on Wall Street.

However, the Japan market is still down 5.7% compared to a week ago.

“Asia has also found its mojo,” says Chris Weston of IG. “There is nothing like poor data to get the equity bulls excited.”

Japanese fourth quarter GDP fell 1.4% quarter-on-quarter annualised, 60 basis points worse than forecasts, with nominal faring slightly better.

“Consumption remains poor, although if you break down the facts, the shining light is that CAPEX gained for a second quarter,” Weston says.