Nikkei edges higher on improved investor sentiment

The Nikkei average reversed losses to close 0.25 per cent higher today at 1638

The Nikkei average reversed losses to close 0.25 per cent higher today at 1638.74, helped by improved sentiment among individual investors.

The broader TOPIX index was up 0.05 per cent at 1,638.74. Earlier, the index had fallen as low as 16,466.74 amid renewed concerns about the health of the world's largest economy.

Despite today's small gains in Tokyo, Yoshinori Nagano, chief strategist at Daiwa Asset Management, said the Tokyo market would come under pressure tomorrow if the Dow extended its retreat.

"If New York takes a breather, I think so should Tokyo," he said. "A global equity run-up has been the main support to the Tokyo market."