Nikkei breaks six-day fall with slight gain

The Nikkei average gained 0

The Nikkei average gained 0.92 per cent at today's close, ending a six-day losing streak as waning concern about a strong yen encouraged investors to buy recently battered issues.

Bargain-hunting also helped shares of other exporters with strong earnings prospects, such as Toyota and Nikon.

"A rapid fall in the dollar recently has been the main drag on the Tokyo market," said Yoshinori Nagano, chief strategist at Daiwa Asset Management.

"But the market seems less worried than before as the speed, not the level, is a problem, and the speed is being somewhat curbed," he said, adding the current level of 110 yen to the dollar is in line with what major manufacturers forecast on average for the dollar/yen rate this business year.

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The Nikkei rose 149.25 points to 16,307.67 after falling more than 1,100 points during the previous six sessions.

The TOPIX index gained 0.74 per cent to 1,657.07.

The Nikkei had posted its longest losing streak since October on a combination of factors including a strong yen, concerns about accounting practices and disappointing profit forecasts from a number of top companies.

The yen today again tested an eight-month high versus the dollar. It traded at around 109.50, off a high of 109.31 at the end of last week.