The rebound came in due course after the negative factors surrounding Japan's financial system had been factored into share prices.
Trade was directionless pre-book-closing, though, and concerns about U.S. retaliation and its economy kept buying in check,
Yesterday's sharp fall in bank shares is overshadowing sentiment,
Foreign investors actively bought... towards the end of the year after seeing the overwhelming victory of Prime Minister Junichiro Koizumi in the general election.
TDK and Cisco didn't exactly deliver a blow to the market through negative surprises. But they didn't give any clues as to when the high-tech recovery will happen.
Apple's announcement deterred investors from buying certain semiconductor-related stocks. But the New York market stabilized as a whole, and that is a big plus.
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.
A deterioration in overseas demand may gradually affect the Japanese economy, like a body blow.
There's talk of continued pension fund buying at the onset of the second-half and the yen's move south should provide support.
As has been reported, lending competition is heating up. It seems the market is gradually coming to doubt if all banks have bright earnings outlooks from an expected end to quantitative easing.
