Tokyo markets calmed by perception China turmoil may be limited

Tokyo

NERVES steadied in Tokyo markets on Thursday as signs of stability returned to the battered Chinese stock market after regulators announced new restrictions on stock selling. The Nikkei 225 index ended slightly up after an early plunge while the yen signalled confidence that the Japanese economy is not seriously threatened.

The apparent stemming of the rout in Shanghai stock prices came as a surprise and relief to investors after Nikkei stock futures had continued to plunge overnight in Chicago. Some analysts claimed meanwhile that the impact of falling stock prices on China's real economy will be "limited".