Big Rally in Japanese Stocks Eases Nation's Financial Fears; Analysts Wary About Market's Direction
The atmosphere of financial crisis that was gripping Japan eased Tuesday following a spectacular 13 percent rise on the Tokyo Stock Exchange.</br></br>The market continued to climb today, with the Nikkei stock index gaining 1.4 percent in the two-hour morning session to close at 23,229.57.</br></br>Tuesday's rally, the biggest in Japan's history, was triggered by a government announcement of measures aimed at boosting market confidence, plus a slew of favorable news including falling oil prices, lower interest rates, sharp rises in foreign stock markets and agreement on a U.S. deficit-cutting plan.</br></br>But the magnitude of Tuesday's surge-a 2,676.75-point rise in the Nikkei-left analysts uneasy about the market's future direction.</br></br>If anything, some experts said, the market's sudden change from utter despair to unbridled euphoria underscores how group-oriented Japanese investors are exceptionally susceptible to a mass stampede.