Problems in China? What problems? Nikkei jumps 7.7%, European markets open higher

Problems in China? What problems?

Investors appear to have put aside worries over a slowdown in the world’s second biggest economy, giving a boost to global markets on Wednesday.

European markets opened with gains of about 2%, but Japan’s Nikkei was the standout performer, adding 7.7% in its best day since the global financial crisis.

The enthusiasm was infectious in Asia. Hong Kong’s Hang Seng added 4%, Taiwan’s main index gained 3.6% and India’s Sensex was trading 1.7% higher.

In China, the Shanghai Composite advanced for a second straight day, gaining 2.3% on signs that Beijing is considering further measures to boost the economy.

The massive rally in Japan pushed the Nikkei back into positive territory for the year. As the yen weakened against the U.S. dollar, exporters including Toyota (TM), Nissan (NSANF) and Honda Motor all gained more than 6%.

Fast Retailing (FRCOF), best known as the owner of clothing brands Uniqlo and Theory, advanced 10%. The retailer is by far the largest component of the Nikkei index.

There was no obvious reason for the index’s dramatic rise. Japan’s Prime Minister Shinzo Abe did propose a mild corporate tax cut on Wednesday, according to Reuters, but investors have expected the move since last year. There were no major economic data releases or policy actions.

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