Nikkei bounces back from four-day losing run

<p>The Nikkei has recovered from a run of four days of losses in a row.</p>

The Nikkei has broken a four-day losing streak by ending today's (March 4th) trading session up for the day.

Having been down for four days in a row as investors grew increasingly nervous about the ongoing political instability in Ukraine, the Nikkei rose by 0.5 per cent to close at 14,721.48.

This year has been a difficult one for the Nikkei so far, which was up by more than 50 per cent over the course of last year, meaning it outperformed global rivals such as the Dow Jones in the US and the FTSE 100 in the UK with ease.

But the situation in Ukraine has been damaging to markets all over the world, with Russia taking advantage of the political unrest in the European country to move military forces into the Crimea region, which has a strong Russian population.

2014 drops

The Nikkei is still down for the year to date by a significant amount, losing ten per cent of its overall value since the start of t2014, reports Reuters. This means it is among the worst performing major markets in the world so far in 2014, a sharp contrast to its gains recorded in the last 12 months.

After the end of the cash market today, there was a further 0.8 per cent gain for the Nikkei. There was also an increase recorded by the broader Topix index, which rose by 0.6 per cent for the day, ending the session at 1,204.11 in thin trade. Volume also fell to its lowest level so far this year on the index as investors held back from making a move.

Completing a clean sweep of gains for the main Japanese indexes, the JPX-Nikkei Index 400 was also up by 0.6 per cent to end the day at 10,892.99. The market was set up earlier in the year and comprises companies with high return on equity and strong corporate governance.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.