Investors are realizing they oversold last week. Tokyo stocks are still very much at the mercy of the U.S. market, but there's now hope technology stocks in both markets have hit bottom.

The current trend is to lock in profits from technology issues and shift money to defensives.

My feeling is that the market's in the process of recovery but it's going to take more time for the Nikkei to really lift off. The Nikkei will probably be stuck around 15,000 for more than a week.

The recent drop was mainly due to a downtrend in New York, especially that in the technology sector. So the rebound came as a great relief to investors here.

Nobody is yet confident about buying up the market.

Foreign investors in particular are selling large-cap technology stocks like Sony. No one's worried about the fundamentals of individual companies, though. It's just that demand for international names is running very dry.