Favorable corporate earnings and economic prospects have not yet been factored into share prices, and price moves on the chart show that the Tokyo stock market has overcorrected itself.
On Monday, the 225-issue Nikkei average slipped below the 11,000 level, or 8.3 percent below its 25-day moving average, marking a deviation far larger than the 7.7 percent shortfall registered on Feb. 6, when the key index closed at 9,420.85 -- its lowest since Dec. 14, 1983.
On the New York Stock Exchange, the technology-heavy Nasdaq composite index fell below 1,500 last week, hitting an eight-month low.