Japan’s stock market soared by more than 7% on February 15 as the dollar strengthened against the yen.
Last week, the US dollar fell to a 15-month low against the yen and the Nikkei 225 index lost more than 11%.
On February 15, however, the dollar rose to 113.95 yen from 113.25 yen on February 12 in New York.
The worse than expected quarter-on-quarter figures did not stop the Nikkei 225 closing 7.2% higher at 16,022.5 points – its biggest daily percentage gain since late 2008.
Last week, Japan’s markets traded sharply lower as a stronger yen against the dollar hurt the country’s big exporters.
On February 12, the Nikkei index closed down 4.8% to 14,952.6 points – below the 15,000 points level and its lowest close since October 2014.
However, a retreat of the yen on February 15 sent shares in the country’s big exporters sharply higher.
Toyota finished the trading day in Tokyo up more than 9.5%, Honda gained 8% and Nissan rose 6.7%. Sharp and Sony gained just over 7% and 8% respectively.
Analysts said the yen could continue to weaken this year, which would be good for exporters.
Elsewhere, markets in China were divided despite worse-than-expected trade numbers.
On the mainland, where markets were open after a week off for Lunar New Year celebrations, the Shanghai Composite closed down 0.6% at 2,746.2.
In Hong Kong, however, the Hang Seng jumped 3% to 18,874.5 points after finishing lower on February 11 and 12.
Trade numbers released on February 15 showed China’s exports in yuan terms fell 6.6% in January from a year earlier, while imports dropped 14.4%.
In US dollar terms, exports fell 11.2% from a year earlier and imports fell 18.8%, marking the seventh and 15th month of straight declines respectively.
The numbers mean the country was left with a record trade surplus of $63.3 billion for the month, compared to $60.9 billion in December.
Analysts said the January trade data was a reflection of slower external demand – particularly from trading partners like South Korea.
In Australia, the benchmark S&P/ASX 200 finished up 1.6% to 4,843.5 points, while South Korea’s benchmark Kospi index closed up 1.5% to 1,862.2 points.