Nikkei Surges Shrugging off Back-to-Back Losses

by: Steven Towns

On Tuesday the Nikkei225 Index climbed 213.56 (1.58%) to close at 13,738.84. This was a decisive gain for those still bullish on Japan after a somewhat disappointing TANKAN released yesterday. In fact, yesterday's lost ground marked the first time since mid-August that the Nikkei225 had lost on back-to-back days. Despite the unmet high expectations in yesterday's TANKAN, a rally actually began after a 100+ point drop in early trading Monday. The index opened nearly 75 points higher today and went on to set new 4-year intra-day and closing highs.

Yesterday I made a post about the TANKAN and included some of my thoughts about the survey's impact on the market and for the 4th quarter. The market's resounding response made the potential negative effects of the TANKAN even more short-lived than I had imagined.