Nikkei Tua Lao On Weaker Wall St, Dollar

Nikkei Ends Tad Higher In Choppy Trade

Kuroda Says Global Econ Hasn't Yet Completely Shaken Off Effects Of Financial Crisis

World Stocks Gain as Nikkei Rebounds

Investors seeking bargains helped push world stocks higher on Tuesday, particularly in Japan, where trading has been hugely volatile since last week amid concerns over the success of the country's stimulus program.

The Nikkei has been dictating market sentiment since Thursday, when it plummeted more than 7% after interest rates on the country's benchmark 10-year bond spiked to above 1% for the first time in a year. The swing in Japanese bonds unnerved investors at a time when Japan's already overburdened government finances are vulnerable to rises in interest rates.

The Nikkei 225 index rose 1.2%  to close at 14,311.98 as the yen slipped against the dollar the benchmark fell 3%  on Tuesday. Overall, however, the index has soared 37%  this year, a show of investor support for Prime Minister Shinzo Abe and his aggressive policies aimed at reversing years of economic malaise and deflation.

The recovery helped European stocks rise   ...more...

BOJ Won't Conduct Policy Rigidly For 2% Price Target: Policymaker

Nikkei Ends Higher On Buying Of Blue Chips, Futures

Amari Says Stocks In Adjustment Phase From Recent Sharp Gains

TOKYO--Japan's economy minister said Tuesday that the nation's stock market is in an adjustment phase, adding that it should stabilize soon as other equity markets are calming down.

" We have been experiencing some turbulence, but there will no problem continuing our journey and we should leave this area of turbulence soon," Akira Amari 甘 利 明 said, using a colorful flight attendant metaphor.

The Nikkei Stock Average was up 0.2% at 14,166 at 0142 GMT, after falling 3.2% on Monday. Last Thursday it shed 7%, its worst fall since the aftermath of the March 2011 disasters.

  ...Nikkei: 14,386.16    +243.51.....

China Hikes Japan Debt Holdings, Remains No. 1 Foreign Owner

TOKYO--China raised its Japanese debt holdings by 14% from a year earlier to Y20 trillion as of the end of 2012, maintaining its position as the biggest foreign holder of Japanese bonds, Bank of Japan data showed Tuesday.

Beijing increased its holdings despite improved risk-taking sentiment in 2012 that reduced demand for safe haven assets such as Japanese government debt, as concerns subsided over the European sovereign debt crisis and a global economic slowdown.

By contrast, the U.S. cut its holdings of Japanese debt by 15% to Y8.6 trillion from Y10 trillion, while the U.K. trimmed its amount by 23% to Y8.9 trillion from Y11 trillion.

Besides improved risk sentiment, another factor prompting some foreign investors to shed Japanese debt was the weakening yen, which could cause valuation losses for Japanese debt holders. Expectations for a change of economic policy under a new administration helped weaken the Japanese currency toward the end of the year.

The debt holdings include Japanese government bonds as well as local government bonds and corporate bonds. The BOJ doesn't offer breakdowns of the holdings.

Foreign ownership of Japanese government debt is relatively small since domestic investors hold more than 90% of it. The balance of short- and long-term Japanese government debt held by foreign investors stood at Y84 trillion at the end of December, accounting for 8.7% of the total Y960 trillion in outstanding debt. That was down from a record 9.1% of the total at the end of September.

Nikkei Widens Losses On Margin Calls

No Sign Of Excessively Bullish Expectations In Asset Markets: Kuroda

Nikkei Opens Sharply Lower On Fall In Nikkei Futures