Japan's Nikkei average reversed early gains on Tuesday, underscoring the volatility that has roiled the market lately, as investors awaited the outcome of a Federal Reserve meeting for clues on whether it will continue to support the US economy.
By the midday break, the Nikkei slipped 0.7% to 12,941.80 after trading as high as 13,139.48. It climbed 2.7% on Monday, lifting the index out of a bear market.
Many investors have been cutting their long Japanese equities and short yen positions on concerns that the Fed will scale back its stimulus this year and after the Nikkei had rallied more than 80 % from mid-November to its 5-1/2 year peak hit on May 23. Since then, trading in Japanese equities has been extremely volatile.
Disappointment over a growth strategy unveiled by the Japanese government recently and worries over slowing growth in China have also contributed to the market tumult.
Underscoring the volatility, since May 23 the Nikkei has had 15 sessions where intraday swings exceeded 2.5%, compared with 16 such trading days for the year up to May 22 and four such days in the whole of 2012. The U.S. S&P 500 only has had one such trading day in 2013, and the Euro STOXX 50 index has 11.
By the midday break, the Nikkei slipped 0.7% to 12,941.80 after trading as high as 13,139.48. It climbed 2.7% on Monday, lifting the index out of a bear market.
Many investors have been cutting their long Japanese equities and short yen positions on concerns that the Fed will scale back its stimulus this year and after the Nikkei had rallied more than 80 % from mid-November to its 5-1/2 year peak hit on May 23. Since then, trading in Japanese equities has been extremely volatile.
Disappointment over a growth strategy unveiled by the Japanese government recently and worries over slowing growth in China have also contributed to the market tumult.
Underscoring the volatility, since May 23 the Nikkei has had 15 sessions where intraday swings exceeded 2.5%, compared with 16 such trading days for the year up to May 22 and four such days in the whole of 2012. The U.S. S&P 500 only has had one such trading day in 2013, and the Euro STOXX 50 index has 11.
No comments:
Post a Comment