This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Stocks Recover After Japan Drop Rattles Traders

By JOE McDONALD

BEIJING (AP) â¿¿ Asian stocks rebounded Friday from Tokyo's sharp decline after investors were encouraged by positive U.S. economic news.

Oil stayed above $96 a barrel on signs of steady American hiring and stronger retail sales despite mounting signs of weakness in China's economic recovery.

Tokyo's Nikkei 225, the regional heavyweight, gained 2.4 percent to 12,748.33, rebounding from Thursday's 6.4 percent plunge that took the index into "bear market" territory.

China's benchmark Shanghai Composite Index gained 0.2 percent to 2,152.96, coming off Thursday's 2.8 percent slide to its lowest close in six months. Hong Kong's Hang Seng gained 1 percent to 21,093.50 and Seoul added 0.2 percent to 1,885.63.

Markets are jittery about the possibility the U.S. Federal Reserve might wind down its stimulus, but were steadied by data showing U.S. retail sales rose 0.6 percent in May, their strongest showing in six months. Also, the number of Americans seeking unemployment benefits was smaller than expected last week.

"Gains in US stocks overnight will help to calm sentiment," said Credit Agricole CIB analyst Mitul Kotecha in a report.

Taiwan's Taiex fell 0.4 percent to 7,916.76 and Sydney's ASX S&P 200 rose 1.7 percent to 4,776.60. Market benchmarks in Singapore, Manila, Jakarta and New Zealand also gained.

On Wall Street overnight, the Dow Jones industrial average rose 1.2 percent and the Standard & Poor's 500 index added 1.5 percent.

Markets in France, Britain and Germany also rose.

Japanese markets have weakened following a burst of euphoria over Prime Minister Shinzo Abe's economic turnaround plan. Markets had surged 50 percent since the start of the year but doubts are mounting about whether Abe's plan will work.

The Nikkei's plunge Thursday took the Japanese market to a 20 percent decline from its May 22 high â¿¿ the definition of a bear market.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,417.78 -7.07 -0.04%
S&P 500 1,862.38 +0.07 0.00%
NASDAQ 4,086.2160 -0.0090 -0.00%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs