Nikkei erases sharp losses as China stocks stem torrid slide

jueves 9 de julio de 2015 02:48 GYT
 

* Investors covered their short positions in late trade -
traders
    * Volume highest since last November

    By Ayai Tomisawa
    TOKYO, July 9 (Reuters) - Japanese stocks ended up on
Thursday, pulling back from 3-month lows in volatile trade as
China's markets stemmed their rout after Beijing slapped curbs
on selling in the latest of a flurry of emergency measures to
avert a full-blown crisis.
    The Nikkei average rose 0.6 percent to 19,855.50
after falling as much as 3.2 percent to 19,115.20 in the
morning.
    "A plunge in early trade freaked out most investors, but
those who shorted earlier seemed to have covered their short
positions after China stocks rose," said Eiji Kinouchi, chief
technical analyst at Daiwa Securities.
    He said that investors had braced for a sharp drop in the
Japanese market since Nikkei futures in Chicago plunged
overnight.
    "The Japanese market guarantees liquidity. Global investors
sold Japanese shares because they wanted to hedge against the
potential losses from their China positions," Kinouchi said.
    China's stock markets  have plunged roughly
30 percent over the last three weeks. But the sharp selloff
abated after drastic measures were unveiled by the Chinese
securities regulator that ban shareholders with large stakes in
listed firms from selling.    
    The broader Topix index fell 0.2 percent to 1,579.89
after diving as much as 3.6 percent to 1,526.09, its lowest
since April 1. Trading was heavy, with 3.7 billion shares
changing hands, the largest since last November.
    The JPX-Nikkei Index 400 dropped 1.0 percent to
14,272.95.

 (Additional reporting by Hideyuki Sano; Editing by Shri
Navaratnam)