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Tokyo / AFP
Tokyo shares rebounded on Monday after overseas markets rallied on easing fears over Deutsche Bank’s future, with investors shrugging off a weak Japanese business confidence report.
Deutsche Bank bounced back on Friday after a source familiar with the matter said that a US fine over toxic debt it sold would be only $5.4 billion, not the $14 billion originally demanded.
The source said an agreement could come in the next few days to settle US government charges that the bank knowingly sold high-risk mortgage securities ahead of the 2008 financial crisis.
“Investors were nervous about the uncertainty surrounding Deutsche Bank and the potential spillover effect on other European banks, but the mood is to take a wait-and-see approach for now,†Yutaka Miura, a senior technical analyst at Mizuho Securities, told Bloomberg News.
Tokyo investors were also waiting the publication of key US economic data, including jobs figures, slated for release this week, he added.
The benchmark Nikkei 225 index gained 0.90 percent, or 148.83 points to 16,598.67, while the Topix index of all first section shares was up 0.60 percent, or 7.94 points, at 1,330.72.
Investors shrugged off the Bank of Japan’s quarterly Tankan report, which showed business confidence among the country’s top manufacturers at its weakest level in more than three years.
That missed market forecasts for a slight improvement.
“The economy is weak and it’s certainly not in a recovery mode,†said Satoshi Osanai, senior economist at Daiwa Institute of Research.