A further rise (in the Nikkei) would need support from good fundamental news, such as corporate earnings or consumer spending.

The New York gains are nice, but a rebound of this scale is not enough to turn the bearish trend around.

People moved to take profits now as they don't want to be squeezed during a holiday.

Tokyo shares followed the Nasdaq today. Also, trading was supported by those buyers who came back to the market now that Y2K-related concerns seem to have cleared.

It can be seen as a positive sign that vigorous corporate restructuring is underway. But the negative impact would be larger as it would dampen individual consumption.

The worst is over. I believe we've seen a peak in selling in those outgoing 30 issues, although selling pressure is likely to linger until Friday.