Asian stocks rally as Japan surges almost 6%

TOKYO – Tokyo’s stock market gained nearly a 1,000 points on Friday, clawing back huge losses of the previous two days and ending a roller-coaster week for Asian stocks.

Tokyo’s benchmark Nikkei 225 index closed up 941.27 points, or 5.9%, on Friday at 16,958.53. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished up 72.70 points, or 5.6%, at 1374.19.

The rebound followed a triple-digit rise in the Dow on Thursday and a 5% increase in oil prices.

On Friday, ECB President Mario Draghi indicated at the World Economic Forum meetings in Davos the central bank would ease policy further at its next meeting in March.

Toyo Securities  strategist Hiroaki Hiwada told Kyodo News Service that Japanese investors bought back shares after a drop of nearly a 1,000 points in the previous two days.

"Heightened risk appetite sparked a relief rally," Hiwada said.

In China, the Shanghai Composite index rose 1.3% Friday, closing at 2916.6, after dropping almost 20% from the start of the year.

Hong Kong’s Hang Seng index climbed 538.4 points, or 2.9%.