Asian shares struggled to sustain the slimmest of rallies on Wednesday as a hesitant performance by the Japanese market fuelled fresh demand for safety in the yen and top-rated bonds.
Dealers had cautioned that the mood remained brittle and it would only take a poor U.S. payrolls report on Friday to set the bears running again. The ADP reading on private hiring is due later on Wednesday and any disappointment will be taken badly by investors.
The strain was clearly taking a toll with the Nikkei .N225 rising, falling, then rising again to be up 1.1 percent at 14,163. It never even got close to testing resistance at the 200-day moving average of 14,425, while there remains a large gap to fill between Monday’s close and Tuesday’s opening.
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