STOCK MARKET WATCH - Tuesday, 31 January 2012

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36. Nikkei posts best January performance in 13 years

http://uk.reuters.com/article/2012/01/31/markets-japan-stocks-idUKL4E8CV58S20120131

TOKYO, Jan 31 (Reuters) - Japan's Nikkei share average
ended nearly flat on Tuesday, but logged its best January
performance in 13 years as investors remained optimistic that
the U.S economic recovery could offset disappointing domestic
corporate earnings.

It gained 4.1 percent in January, much better than its
average of 1.37 percent for the month between 1972 and 2011.

"A lot of people call this is short-covering or month-end
window dressing, but the market is definitely in an upward
trend," said Yoshihiro Ito, chief strategist at Okasan Online
Strategies.

"The fact that Portugal's bond yields rose and reports that
Greek talks are facing difficulties is nothing new and it's not
a reason to sell. It's all a matter of market sentiment --
investors remain hung-up on Europe, but now is not the time to
take a wait-and-see approach," he said.