The Nikkei rose over the course of today's (June 14th) trading but its gains were not strong enough to avoid recording a fourth weekly drop in a row.
An increase in the index's value of 1.9 per cent provided a positive end to the week, but this could not cancel out the losses sustained previously.
The Nikkei had a very strong start to the year and was up by around 50 per cent as it hit five-and-a-half year highs in May, but since then it has fallen away by over 20 per cent.
"People are unwinding (short) positions, or people are trying to buy on dips. The market did rebound and the US did well so people are buying on the back of that," a senior dealer at a foreign bank told Reuters.
The Nikkei closed the day up 241.14 points at 12,686.52 after trading as high as 12,900.65 during the session.
Today's 1.9 per cent gain for the Nikkei helped to pare down the six per cent losses sustained by the index yesterday.
Learn about the Asian markets and CFD trading at City Index
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.