Foreign investors actively bought... towards the end of the year after seeing the overwhelming victory of Prime Minister Junichiro Koizumi in the general election.
There's uncertainty in the market and investors are looking to large-cap shares for relative safety.
A deterioration in overseas demand may gradually affect the Japanese economy, like a body blow.
The rebound came in due course after the negative factors surrounding Japan's financial system had been factored into share prices.
Investors are asking themselves whether the rise in high-tech shares over the past couple of days wasn't a bit too much, too soon.
U.S. stocks have settled down, but data on the economy is getting worse. Investors are increasingly worried the U.S. economy will fall off a cliff and pull Japan over with it.
Even good earnings results from well-known names like Toyota Motor Corp aren't helping sentiment.
Many had bought high-techs on the back of a weaker yen. But a scenario of the yen's free fall doesn't seem realistic.
But a sour-loan solution remains elusive, the supplementary budget is unlikely to do much for the economy, and the future direction for Wall Street remains unclear.
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