Nikkei bounces back from Monday losses

<p>The Nikkei is up 1.4 per cent today.</p>

The Nikkei has risen by 1.4 per cent today (May 28th), cancelling out some of the losses recorded on the index yesterday.

Having fallen by more than three per cent on Monday and opened 1.4 per cent down this morning, the Nikkei bounced back before the midday break.

Speaking to Reuters, Kyosuke Suzuki, director of FX at Societe Generale in Tokyo, explained the trading range of the index is getting narrower by the day.

He said: "This is not like a panic we saw after the Lehman shock. If volatility is steadying at the current level, then the dollar/yen is likely to head higher."

Tetsuro Ii, chief executive of Commons Asset Management, said the Nikkei is currently at a "fair" value. The index is up almost 50 per cent on the start of the day.

Although 2013 has been a good year for the Nikkei so far, it fell by 7.3 per cent on May 22nd, which has been described by analysts as a "blip".

Learn about the Asian markets and CFD trading at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (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.