Across-the-board buying is over and investors have to select stocks with good earnings prospects.
The New York gains are nice, but a rebound of this scale is not enough to turn the bearish trend around.
A further rise (in the Nikkei) would need support from good fundamental news, such as corporate earnings or consumer spending.
It can be seen as a positive sign that vigorous corporate restructuring is underway. But the negative impact would be larger as it would dampen individual consumption.
People moved to take profits now as they don't want to be squeezed during a holiday.
Tokyo shares followed the Nasdaq today. Also, trading was supported by those buyers who came back to the market now that Y2K-related concerns seem to have cleared.
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