Speculation that some mutual funds here would pour 150 billion yen into equities also encouraged some speculators to buy shares in a thin trading session.
In contrast to the year-end rally here driven by real estate and other domestic plays, taking a lead now are stocks which have a high correlation with the Nasdaq market.
The growth is clearly being driven by internal demand, and that means Japan is recovering on its own.
They have actively poured their money into blue-chip companies here such as Honda, Toyota, Matsushita Electric and Canon.
The accounting problems in the U.S. seem to have crossed a significant hurdle on Wednesday, and the external pressures on the Japanese market in general have probably peaked.
Local investors got a lift after data showed that foreign investors almost doubled their net purchases of stocks here last week.
I expect some volatile moves this week, especially with the steep drop in U.S. shares. Oil-related shares may get a boost on the back of higher commodities prices.
The outlook for the economy will become a focal point this week.
It's not just the weakness in U.S. stocks this time. The dollar is falling (against major currencies) at the same time, and money is flowing out of the U.S..
The dollar gained some ground against the yen after Japan's apparent intervention early this morning. That's something that makes the market feel good.