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Nikkei bounces to hit 6-year closing high as funds chase futures

Market has been underpinned by soft yen after Fed's tapering decision

Reuters Tokyo

Japan's Nikkei share average closed a choppy session at its highest level in six years on Friday, with traders citing futures buying by funds ahead of the long weekend for the rebound from morning losses.

The market has been underpinned by a soft yen after the US Federal Reserve this week finally announced it would start dialing back its massive stimulus, sending the dollar broadly higher.

The Bank of Japan meanwhile kept monetary policy steady on Friday, encouraged by growing signs the benefits of its massive stimulus are spreading through broader sectors of the economy.

"The Japanese market has risen nearly 600 points between Tuesday and Thursday. But profit-taking was limited during the day today, so investors assumed the Nikkei is still on the rising trend," said trader at a European brokerage.

 

The Nikkei rose 0.1% to end at 15,870.42, the highest closing level since December 2007, bouncing back from 0.7% decline intraday. For the week, the index added 3.0%.

The Topix fell 0.1% to 1,261.64.

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First Published: Dec 20 2013 | 1:03 PM IST

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