SINGAPORE - Japan stocks jumped on Thursday as bargain-hunters sifted through the wreckage of a battered market, but the rest of Asia was murky with investors wary ahead of the September 11 anniversary and a possible attack on Iraq. The mind-numbing uncertainty over the global economy muzzled the foreign exchange market with sentiment shaky for both the dollar and yen.
"I think we are at a watershed where bulls and bears are competing," said Toshiyuki Aoyagi, foreign exchange manager at Nissho Iwai Corp.
The bears in Japan's equity market were corralled for the moment at least. The benchmark Nikkei index closed 1.62 percent higher at 9,222.12 and the broader TOPIX climbed 1.99 percent to 904.05.
But traders said Thursday's rise was no more than a brief rally in a market which is trending lower, since a majority of investors have been imbued with pessimism about the world's two biggest economies. "It will likely stay chilly, at least until the first anniversary of the September 11 attacks," said Takashi Miyazaki, senior strategist at UFJ Partners Asset Management. European stocks looked set to open higher after a rebound on Wall Street, but troubled Zurich Financial's massive loss will highlight the insurance sector's plight. Trade in futures contracts indicated Wall Street would open a bit lower later on Thursday, after stocks swept higher on Wednesday when investors waded back into the market after Tuesday's carnage.
"There are a lot of bargains out there, as long as you think earnings growth is going to be there," said Benjamin Pace, managing director at Deutsche Bank Private Banking. "The biggest question for the market is: What if earnings don't come through?"//www.money.iwon.com