The Tokyo stock market appears poised to snap out of a three-month correction. Having reached a high of 20,833 on April 12, the 225- issue Nikkei average fell to 16,008 on May 15 and is now hovering around 17,500.
The Nikkei average appears likely to move between 17,200 and 18,400 in the near term.
Market participants are no longer fretting about an economic downturn. They have taken heart from the latest batch of corporate earnings reports and a growing flow of money into the market. Fears of further volatility in New York share prices are also abating.