Wednesday, September 4, 2013
Nikkei Trims Losses After Quake-Related Selling Runs Course
TOKYO (NQN)--Tokyo stocks are trimming early losses mid-morning Wednesday, with the Nikkei Stock Average hovering around the upper-13,800 level, about 80 points lower than Tuesday's close.
The benchmark index briefly fell more than 130 points in reaction to an earthquake that struck the Kanto region at around 9:30 a.m., Japan time. But now that the earthquake-related selling has run its course, investors are again buying, helping the index resist further declines.
The Nikkei average had risen 589 points over the two trading days through Tuesday, prompting investors to lock in gains due to short-term overheating. The two-day rise was likely led by investors who covered short positions, on the back of improvements in global economic sentiment.