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Nikkei Taking Fed Data in Stride Thursday

In early Thursday trading, the Nikkei opened sharply lower but quickly recovered. As of 9:30 p.m. EST, the index was down 89 points or 0.68 percent at 13,155.85.

Market watchers were expecting much worse following the U.S. indices’ large-scale selloff. The Dow was down 205 points or 1.35 percent on Wednesday following Fed Chairman Bernanke’s announcement that he believes that bond buying will begin to taper in light of an improving economy.

The yen was fractionally weaker against the dollar. It was down 0.10 percent at $96.56 against the dollar.

Other Asian indices were down Thursday. The Shanghai composite was down 0.5 percent, the Kospi was down about 1 percent, and the Hang Seng was 1.52 percent lower to lead Asian markets on the downside. Australia’s ASX 200 was down 1.26 percent.

The Nikkei is showing signs of resiliency as it climbs more than 7 percent from its recent lows. After favorable economic data, investors have become increasingly bullish on Japan. Others caution that the recent rally could be short covering.

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