The Nikkei share average edged higher on Monday as buying in defensive stocks reversed early losses.
The Nikkei .N225 added 0.4 percent to 12,7329.85 after trading as low as 12,549.82 on the back of weak U.S. stocks on Friday. Monday’s gain took the index above its 100-day moving average at 12,734.37
“It’s a mixed flow so far. It doesn’t seem to be the type of guys that work on the cash side. It could be something else – high-frequency trading driven or it could retail driven,” a senior trader at a foreign bank said. “There is nothing on the cash side here.”
“Defensives are outperforming but we are starting to see some tech names are popping up to positive territory.”
Amid market gyration and uncertainty over whether the U.S. Federal Reserve will start to scale back its massive stimulus, investors are likely to be cautious ahead of a two-day U.S. central bank meeting starting on Tuesday.
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