Nikkei bounces back from early losses

The Nikkei bounced back from losses today (June 21st) to end the week on a high.

After recording a weekly dip four times in a row, the Nikkei rose by 0.9 per cent to 13,125.33. Earlier in the day, it had dropped as low as 12,702.67.

Global markets have responded negatively to the news that the US Federal Reserve is considering winding down its asset purchasing programme in the next two years.

But although the Nikkei started the day badly – following on from the losses sustained by the index yesterday – it was able to recover during the afternoon.

"Investors hope that Wall Street will rise later in the day as it dropped sharply over the past two days. They want to decrease their selling positions in the Japanese market before the weekend," said a fund manager based in Tokyo.

The Nikkei has therefore risen over the course of the week, the first time it has done so in more than a month. The index had been steadily dropping since recording new five-and-a-half year highs during May.

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