Japan’s Nikkei 225 index has risen 7.7 per cent overnight, its largest daily gain since October 2008, to help spur further gains for developed market stocks.
The Nikkei closed at 18,770.5, a rise of 1,343 points, with little obvious catalyst other than a continued improvement in risk appetite.
The gain followed a 2.5 per cent rise for the S&P 500 yesterday, and was complemented by a 4.1 per cent rise for Hong Kong’s Hang Seng index this morning.
Japan’s surge prompted a strong open for European stocks, with Germany’s Dax opening 2.3 per cent higher at 10,507 and the FTSE 100 climbing 1.8 per cent to 6,281.
The rises come just days before the US Federal Reserve’s keenly-anticipated September interest rate decision, which could see the central bank raise rates for the first time since 2006.
Both the World Bank and the International Monetary Fund have urged the Fed to hold fire on a hike until global economic conditions improve further.
