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Japanese stock market likely to remain volatile

February 5, 2014

TOKYO , Feb. 5 -- ( Kyodo ) _ The Japanese stock market is likely to remain volatile after the 225-issue Nikkei Stock Average briefly slipped below 14,000 on Wednesday for the first time in around four months, analysts said. "It will remain volatile in February," said Shun Maruyama , chief Japan equity strategist at BNP Paribas Securities ( Japan ) Ltd. Depending on additional bad news, the Nikkei index could plunge to 13,600, he said. The index eventually rose back to 14,180.38 on Wednesday, following a four-day losing streak during which it lost 9 percent. Yutaka Miura , senior technical analyst at Mizuho Securities Co. , said he is now focusing on January U.S. jobs data due out Friday and new U.S. Federal Reserve Chair Janet Yellen's congressional testimony next week. Depending on the jobs data and Yellen's remarks, "stock prices could put an end to their plunge briefly," he said. Even once stock prices hit bottom, however, "bullishness is unlikely to return," said Tsutomu Yamada , market analyst at Securities Co. Given that April's consumption tax hike is expected to drag down the Japanese economy, stock prices are expected to seesaw within a narrow range, he said.

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Source: Japan Economic Newswire

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