Nikkei up 2.1 pct after breaking above key resistance

Trade the News

Monday September 06, 2010 10:08:06 AM GMT

TOKYO, Sept 6 (Reuters) - Japan's Nikkei average rose 2.1 percent on Monday, gaining for a fourth day after fewer-than-expected U.S. job losses in August bolstered optimism that the U.S. economy would not fall back into recession.

The Nikkei picked up momentum after it broke above its 25-day moving average for the first time in about a month, bringing its gains this month to more than 5 percent following a 7.5 percent slide in August.

The benchmark Nikkei gained 187.19 points to 9,301.32, above 9,229 or its 25-day moving average, with some market participants citing buying by domestic investors and short-covering of futures by foreigners.

The 25-day moving average is considered a proxy for a one-month moving average and is closely watched in Japan.

The broader Topix rose 1.8 percent to 838.71. (Reporting by Aiko Hayashi; Editing by Joseph Radford)

(c) Copyright Thomson Reuters 2010. Click For Restrictions. http://about.reuters.com/fulllegal.asp