Nikkei manages to break four-day losing streak



Stocks turned higher Tuesday, with the Nikkei 225 average snapping a four-day losing streak thanks to buying on dips.

The Nikkei closed up 41.29 points at 13,894.61. On Monday, the key indicator fell 170.99 points.

The Topix gained 2.55 points to close at 1,150.13 after losing 16.24 points Monday. It rose for the first time in eight trading days.

Stocks opened lower to track an overnight fall on Wall Street. The Dow Jones industrial average closed at a one-month low amid wariness over a lack of progress in the U.S. fiscal battles to avoid a government default.

The yen’s continued strength against the dollar amid a “risk off” mood among investors concerned about the fiscal issues also weighed on the TSE, brokers said.

After the initial selling, however, stocks gradually gained ground and recouped the earlier losses as the yen eased against the dollar, brokers said.

“Several technical indicators are giving off strong buy signals,” said Hiroichi Nishi, equity general manager at SMBC Nikko Securities. Given recent falls in stock prices, there should be a rebound of around 10 percent, he added.

While there were no major market-moving incentives, investors quickly scooped up stocks on dips, Yoshihiko Tabei, chief analyst at Kazaka Securities, said.

But amid growing uncertainties, “it is difficult for investors to take either long or short positions,” Tabei said. Although the Nikkei turned higher for the first time in five days, the topside was limited as stocks became susceptible to profit-taking by investors wary of the U.S. fiscal stalemate, he said.

Rising issues exceeded falling ones 915 to 727 on the first section, while 110 issues were unchanged. Volume increased to 2.646 billion shares from 2.331 billion Monday.

Japanese government bond futures shed early gains to turn lower Tuesday due to the rebound in the Nikkei 225 stock average and a decline in the yen.

The lead December contract on 10-year JGBs finished down 0.04 point from Monday at 144.39. Volume rose to 16,212 contracts from 15,989.

In late interdealer trading in cash JGBs, the yield on the latest 330th 10-year issue with a 0.8 percent coupon stood at 0.655 percent, up from 0.640 percent late Monday.