Share prices on the Tokyo Stock Exchange were erratic Friday, with the Nikkei average at one point swooping to within a hair of the key 16,000 barrier but eventually logging a slight rise over the previous day. The index closed at 16,458.94, up 94.00 points.

In morning trading, prices plunged on sliding stock prices in New York, falling as low as 16,082.32. It recovered slightly to end the morning at 16,150.15. The New York plunge reminded players that the downward spiral of the world's stock markets has yet to end.

Market participants saw stock prices plunging in South American markets, indicating the New York correction may last longer than expected. "Markets worldwide are continuing to plummet," said Yoshihiko Kuroichi, manager of the product marketing division at Kankaku Securities Co. "The situation is more serious than we originally had thought."

The broader-based Topix index, which covers all issues on the first section of the TSE, closed at 1,277.12, up 1.91 points. In the morning, it had fallen 1.44 percent to 1,256.86.

Brokerages adjusted their positions in cash stocks ahead of the three-day weekend. Hedge funds also sold hefty futures, fueling arbitrage unwinding, traders said.

The benchmark index briefly dipped as low as 16,096.20 in early morning trading, but public fund managers activated government-encouraged "price-keeping operations" to lift the key index above the line. The drop widened again toward the end of the session, hitting a low of 16,082.32, raising concerns that the key average may fall below 16,000 in the near term.