Nikkei up for 8th day, but low volumes may portend imminent correction
TOKYO, May 26 (Reuters) - Japanese stocks edged up in a choppy session on Tuesday, with the eighth day of gains underpinned by optimism about the economy's recovery. The Nikkei 225 ended 0.1 percent higher at 20,437.48 after flitting between positive and negative territory during the session. Although the subdued activity raised the risk of profit-taking, the Nikkei's eight-day gains marked its longest winning streak since last August. The broader Topix was flat at 1,659.57, with only 1.914 billion shares changing hands, the lowest level in a month. "If the stock market is rising with high volume, it's a sign that the market will likely rise further, but when the market is marginally higher on low volume, there is a risk behind the rise," said Norihiro Fujito, a senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. "Whether it's a political risk in the euro zone, volatility in the bond market or the timing of a U.S. rate hike, we can't ignore these risks," he said, adding that there's a possibility that bullish positions would be unwound. The JPX-Nikkei Index 400 was also flat at 15,003.85. (Reporting by Ayai Tomisawa; Editing by Shri Navaratnam)
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