Reply #128: Nikkei ends higher, reversing course as yen eases [View All]

http://www.reuters.com/article/hotStocksNews/idUST26511220071122

TOKYO (Reuters) - Japan's Nikkei average reversed course to end higher on Thursday, erasing earlier losses that took it to a fresh 16-month low, as the yen eased against the dollar.

Chugai Pharmaceutical Co Ltd (4519.T: Quote, Profile, Research) jumped after the company and its Swiss parent, drugmaker Roche (ROG.VX: Quote, Profile, Research), said they had submitted experimental Actemra drug to U.S. authorities for approval to treat moderate to severe rheumatoid arthritis in adults.

Still, some market participants said the upswing was a technical rebound, and gains were also helped by closing of short positions ahead of a three-day weekend. The Tokyo market will be closed on Friday for a national holiday.

"There is always a brief stop to even torrential rain," said Zenshiro Mizuno, senior managing director at Marusan Securities, adding that technical signs had pointed to an imminent rebound.

"But it may start raining again at any moment. It doesn't mean the market has shook off problems. Subprime woes will linger."

The Nikkei (.N225: Quote, Profile, Research) ended up 0.3 percent at 14,888.77. During morning trade it hit a low of 14,669.85, the lowest since July 2006. For the week, the benchmark Nikkei fell 1.8 percent. The broader TOPIX (.TOPX: Quote, Profile, Research) fell 0.1 percent to 1,437.38, after earlier dipping to 1,417.47, its lowest since October 2005.

Trade was active, with 2.3 billion shares changing hands on the TSE's first section compared to last month's daily average 1.98 billion shares.