The Tokyo stock exchange closed with a solid profit on Tuesday. Investors ignored news that the Japanese economy contracted in the first quarter and started looking for bargains after the recent price drops.
The vote was supported by better-than-expected results from several large Japanese companies. The other stock market indicators in the Asian region also gained ground.
Tokyo’s leading Nikkei ended up gaining 2.1 percent at 28,406.84 points. The Japanese economy shrank by 5.1 percent in the first quarter compared to the same period a year ago. Compared to the fourth quarter, the contraction was 1.3 percent. This ended two-quarters of growth in a row. The world’s third-largest economy was hit by stricter corona measures to combat the virus rebound last quarter.
Recruit Holdings rose more than 7 percent. The Japanese secondment company issued a strong outlook for the current financial year. Mitsubishi UFJ Financial Group (plus 2.6 percent) also expect to make more profit this financial year than analysts had foreseen. The Japanese bank also pays out a higher dividend. Bridgestone won almost 2 percent thanks to better-than-expected results from the Japanese tire manufacturer.
The stock market in Taiwan showed a strong recovery and rose 5 percent. A day earlier, the Taiex fell nearly 3 percent due to stricter corona measures in and around the capital Taipei. The island state will also close its borders to foreigners without a residence permit from Wednesday.
Foxconn thickness 8.5 percent. Investors responded enthusiastically to the Taiwanese tech company’s strategic partnership with car group Stellantis, the parent company of car brands such as Peugeot, Citroën, Opel, Fiat and Jeep.