Friday, October 4, 2013
Nikkei Ends Morning Down After Resisting Further Declines
TOKYO (NQN)--Tokyo stocks closed morning trade lower Friday, with the Nikkei Stock Average falling 61.67 points, or 0.44%, to 14,095.58.
Due to concern over a continued U.S. government shutdown, the Dow Jones industrial average closed lower overnight, falling below the psychologically important 15,000 line. This trend carried over to the Tokyo market.
The dollar briefly fell to the upper-96 yen range overnight in New York, and its pause at the lower-97 yen range in Tokyo on Friday accelerated selling of stocks. The Nikkei average briefly fell more than 200 points to fall below 14,000 for the first time in about a month. SoftBank Corp. (9984), which logged its year-to-date high the previous day, fell into negative territory as investors locked in recent gains.
After selling ran its course, buying to cover short positions, prompted by the index falling below the psychologically important level, helped the Nikkei resist further declines. With bargain hunting also taking place, the benchmark index closed the morning session in negative territory but at a higher level than at its open.